Question 7
A bond pays 200 units in 1 year and 200 units in 5 years. What is the (simple) duration of the bond?
5 years
3 years
2.5 years
1 year
A bond pays 200 units in 1 year and 200 units in 5 years. What is the (simple) duration of the bond?
5 years
3 years
2.5 years
1 year
Correct answer
3 years
Question 7 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 4 marks.