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A government bond was issued on 2nd January 2013 with a maturity of 10 years. On the 2nd January 2016, its yield on the...

A government bond was issued on 2nd January 2013 with a maturity of 10 years. On the 2nd January 2016, its yield on the yield curve is associated with a maturity of ___________.

(a) 3 years (b) 7 years (c) 10 years (d) 13 years

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Answer #1

Maturity left = 10 yrs - 3 yrs = 7 yrs

So option b. 7 yrs is the correct answer

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