contestada

A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of ________ years.

Respuesta :

Answer: 4 years

Explanation:

A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of 4 years.

The duration of a zero coupon bond is the life of the bond. In this case, the life of the bod is given in the question as 4 years.

Therefore, the answer will be 4 years.

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