Question: Given its time to maturity, the duration of a zero-coupon bond is _____ lowest when the discount rate is equal to the risk-free rate higher
Given its time to maturity, the duration of a zero-coupon bond is _____ lowest when the discount rate is equal to the risk-free rate higher when the discount rate is higher higher when the discount rate is lower the same regardless of the discount rate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
