Score $19$

A$.$ Bonds and Their Valuation: Assessing a Bond Risk Investor's investment horizon $B,$ which is the period of time an investor plans to hold a particular investment.

Longer maturity bonds have high risk but low reinvestment risk, while higher coupon bonds have a higher level of risk and a lower level of risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called $0,$ which is the weighted average of the time it takes to receive each of the bond's cash flows.

Conceptual Question:

Which of the following bonds would have the largest duration?

$10-$year, $7K$ annual coupon bonds $B$

Continue without saving