easy · Certified Financial Planner Tax Planning
The Holm family is considering investing in zero-coupon bonds for their child's college fund.
According to the investment planning math provided, what is the Macaulay Duration of a zero-coupon bond?
- It is exactly equal to the bond's maturity.
- It is calculated as maturity divided by the coupon rate.
- It depends on the current market interest rate.
- It is always less than the bond's maturity.
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