Which bond (of same maturity) will have maximum duration:
ZCB
Perpetual
Plain Vanilla
Can you please let me know how to logically proceed to answer the above question and then provide answer explanation?
Thanks
Which bond (of same maturity) will have maximum duration:
ZCB
Perpetual
Plain Vanilla
Can you please let me know how to logically proceed to answer the above question and then provide answer explanation?
Thanks
Depends on the specific characteristics.
Do you have more details?
ZCB is provided as answer.
I do not have any more details
Did you add the “of same maturity”, or did I simply miss that before?
In any case, it doesn’t make sense: the perpetual bond doesn’t have a maturity.
The point they’re trying to make, I suspect, is that the larger the coupon payment, the shorter the duration.
The words " of same maturity" was in the question always.
I did not add or make any changes to question.
Thanks for your inputs