00:01
Here we are asked, which of the following bonds have the largest duration? so when we're talking about the largest duration, which one is going to take the longest to pay out? well, when you're looking at bonds, there's multiple factors.
00:17
There's, that's how i'll say there are multiple factors that go into how is its duration going to be affected, multiple factors.
00:28
And the reason why the factors affect the duration is because you kind of want to have a balance of risk and reward.
00:40
Balance of risk and reward.
00:46
For instance, high risk should mean higher reward.
00:50
Low risk should be lower reward.
00:52
And so that duration is going to be affected by the balancing of these different factors based on the risk and to risk to reward ratio.
01:03
So those factors are going to be, number one, it's maturity...