easy · Certified Financial Planner Tax Planning

Which of the following describes the relationship between a zero-coupon bond's maturity and its Macaulay Duration?

  1. Macaulay Duration is always greater than maturity.
  2. Macaulay Duration is always less than maturity.
  3. The two are unrelated for bonds without a coupon.
  4. Macaulay Duration is exactly equal to maturity.

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