Question: A zero coupon bond has 4 years until maturity and is trading at a discount. The duration of this bond is _______________. a. you need

A zero coupon bond has 4 years until maturity and is trading at a discount. The duration of this bond is _______________.

a. you need the yield to answer this question

b. less than 4

c. equal to 4

d. greater than 4

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

A zero coupon bond has 4 years until maturity and is trading at a discount. The duration of this bond is

Q:

1 Duration 1. A zero coupon bond with 4 years to maturity has an annualized yield to maturity of 4%. A 4-year maturity annual-pay coupon bond has as face value of $1000 and a 3% coupon rate. The...

Q:

A zero coupon bond with 4 years to maturity has an annualized yield to maturity of 4%. A 4-year maturity annual-pay coupon bond has as face value of $1000 and a 3% coupon rate. The coupon bond is...

Q:

1. A zero coupon bond with 4 years to maturity has an annualized yield to maturity of 4%. A 4-year maturity annual-pay coupon bond has as face value of $1000 and a 3% coupon rate. The coupon bond is...

Q:

A zero coupon bond has 4 years until maturity and is trading at a discount. The duration of this bond is Greater than 4 Less than 4 You need the yield to answer this question. Equal to 4 y

Q:

Exactly one year ago, an investor purchased a $100 face value zero coupon bond with 4 years to maturity. The market yield to maturity at that time was 6% p.a. compounded semi-annually. Now, one year...

Q:

Exactly one year ago, an investor purchased a $100 face value zero coupon bond with 4 years to maturity. The market yield to maturity at that time was 6% p.a. compounded semi-annually. Now, one year...

Q:

Exactly one year ago, an investor purchased a $100 face value zero coupon bond with 4 years to maturity. The market yield to maturity at that time was 6% p.a. compounded semi-annually. Now, one year...

Q:

QUESTION 17 Exactly one year ago, an investor purchased a $100 face value zero coupon bond with 4 years to maturity. The market yield to maturity at that time was 6% p.a. compounded semi-annually....

Q:

QUESTION 7 Exactly one year ago, an investor purchased a $100 face value zero coupon bond with 4 years to maturity. The market yield to maturity at that time was 6% p.a. compounded semi-annually....

Q:

You work at the investment bank. 'You have been asked to pay a dividend to a client for a security you held. They were supposed to get $70, but they only got $20. He informed the customer that the...

Q:

Why would a firm that seeks to minimize its expenditures on inputs not want to operate on the uneconomic portion of an isoquant?

Q:

The LSUS Corporation has beginning long - term debt of $ 8 0 0 and ending long - term debt of $ 7 9 0 . The beginning and ending total debt balances are $ 1 , 2 2 0 and $ 1 , 3 6 0 , respectively....

Q:

I have a credit card which bills on the 9th of each month. On 11/9 my balance was $850.14. I made charges of $318.29 on 11/17, $307.45 on 11/19 and $253.50 on 12/5. I made a payment of $800 on 11/25....

Q:

(LO 8-1) Go to finance.yahoo.com and type in the ticker symbol for Apple (AAPL) and click on the statistics tab. Which of those variables would be useful in assessing profitability?

Q:

(LO 8-3) Which would you predict would have more positive sentiment in a 10-K, the financial statements or the MD&A (management discussion and analysis) of the financial statements? More positive...

Q:

(LO 8-2) Determining how sensitive a stocks intrinsic value to assumptions and estimates made would be an example of _____ analytics. a. diagnostic b. predictive c. descriptive d. prescriptive