How does an increase in duration affect the maturity of zero-coupon bonds?

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

In zero-coupon bonds, a higher duration typically corresponds to a shorter maturity period. Therefore, as duration increases, the maturity tends to decrease.

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