For zero-coupon bonds, how does the duration change as the maturity lengthens?

Security Valuation MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Security Valuationfinance-mcqs › security-valuation
Published
13 May 2023
Last updated
28 May 2026

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Explanation

The duration of zero-coupon bonds increases as maturity extends, but this increase happens at a decreasing rate rather than accelerating or remaining constant.

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