Question 1
Consider a bond which pays 500 units in 5 years and 1000 units in 10 years. What is the maturity and duration of the bond, respectively?
10 years, 10 years
5 years, 5 years
10 years, 8.33 years
5 years, 8.33 years
Consider a bond which pays 500 units in 5 years and 1000 units in 10 years. What is the maturity and duration of the bond, respectively?
10 years, 10 years
5 years, 5 years
10 years, 8.33 years
5 years, 8.33 years
Correct answer
10 years, 8.33 years
Question 1 of 25 in the IIT Madras BS Corporate Finance (Corporate Finance) Quiz 1 paper sat on 27 Oct 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB2 27 Oct 2024). It carries 4 marks.