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At the same interest rate, which of the following five-year securities will have the lowest duration A...

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Finance

At the same interest rate, which of the following five-yearsecurities will have the lowest duration

A Treasury note.

A Treasury bond.

A car loan.

A simple load.

A zero-coupon bond.

Answer & Explanation Solved by verified expert
4.3 Ratings (620 Votes)
Duration of the bond measures its price sensitivity if the interest rates are changed At the same interest rate and maturity period A Treasury note The duration of treasury note will depends on its periodic coupon payments maturity amount payment at the    See Answer
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Transcribed Image Text

At the same interest rate, which of the following five-yearsecurities will have the lowest durationA Treasury note.A Treasury bond.A car loan.A simple load.A zero-coupon bond.

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