Question 12
Consider a bond that pays Rs 400 in 3 years and Rs 600 in 5 years. What are the maturity and duration of the bond, respectively?
5 years, 4.2 years
4.2 years, 5 years
5 years, 5 years
5 years, 3 years
Consider a bond that pays Rs 400 in 3 years and Rs 600 in 5 years. What are the maturity and duration of the bond, respectively?
5 years, 4.2 years
4.2 years, 5 years
5 years, 5 years
5 years, 3 years
Correct answer
5 years, 4.2 years
Question 12 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 23 Feb 2025, in the January 2025 term (IIT M DEGREE AN EXAM QDB2 23 Feb 2025). It carries 4 marks.