Ask Question

Which would have a longer duration: (a) a five-year fully amortized installment loan with semiannual payments or (b) a five-year semiannual payment bond, ceteris paribus. Why

+3
Answers (1)
  1. 27 May, 12:49
    0
    Answer: (B) a five-year semiannual payment bond

    Explanation: The bond will have a longer duration because it is an investment that the investor receives interest payments until its maturity.

    The amortizing loan is a loan whereby the borrower pays principle and interest throughout the period of the loan.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which would have a longer duration: (a) a five-year fully amortized installment loan with semiannual payments or (b) a five-year semiannual ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers