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Today is 15 September 2021. Jay has a portfolio which consists of two different types...

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Accounting

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Today is 15 September 2021. Jay has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 15 March 2027. Instrument B is a Treasury bond with a coupon rate of j2 = 4.31% p.a. and face value of 100. This bond matures at par. The maturity date is 15 March 2027. Which one of the following statements is true? a. The duration of instrument A is lower than the duration of instrument B O b. Without the yield rate information, we can not find the duration of instrument A O c. The duration of instrument B can be longer if the coupon rate of instrument B is higher. O d. None of above statement is true

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