Solved

Consider a Consol Bond with a Required Yield to Maturity

Question 63

Multiple Choice

Consider a consol bond with a required yield to maturity of 9 per cent. What is the consol bond's duration (round to two decimals) ?

A) Infinite as the bond has no maturity
B) 0 years
C) 9.33 years
D) 12.11 years

Related Questions

Q5: The larger the size of an FI,

Q10: The larger an FI's absolute leverage adjusted

Q11: The leverage adjusted duration gap measures:<br>A)the change

Q32: Duration is defined as:<br>A)the weighted-average time to

Q40: Immunising the balance sheet to protect equity

Q55: Consider an asset with a current market

Q57: An FI has a leverage-adjusted duration gap

Q65: Consider a security with a face value

Q66: Which of the following statements is true?<br>A)The

Q72: With increasing maturity of a fixed-income asset