Homework Answers
The Correct Answer is D.13 years.
For all bonds the duration is less than maturity except for a Zero Cupon Bond where the duration is equal to the maturity.
The question states that the Zero Cupon Bond matures in 13 years which means the duration of the bond will also be equal to 13 years.
Therefore duration of the Zero Cupon Bond is 13 years.
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Zero-coupon bond YTM
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