Question at position 16 A 15-year bond was issued 10 years ago. Its tenor is equal to:A 15-year bond was issued 10 years ago. Its tenor is equal to:none of the options5 years10 years15 years

Question

BlackTom AI · Accepted Answer

To analyze the question, first identify what is meant by tenor in bonds: the tenor (or maturity) is the total time from issuance to the final repayment date.
Option 1: 'none of the options' claims that none of the given choices match the remaining time. This would be incorrect if one of the specified durations matches the actual remaining time, which we will determine.
Option 2: '5 years' reflects the remaining time until the bond matures, given that it was issued 10 years ago with an original 15-year term; 15 - 10 = 5 years remaining. This aligns with standard bond maturity calculations.
Option 3: '10 years' would imply the bond still has 10 years left, which would mean a 20-year original tenor (since 10 years have already elapsed), contradicting the stated original 15-year term.
Option 4: '15 years' would indicate no time has passed since issuance, i.e., the bond would have just been issued, which is false because the problem states it was issued 10 years ago.

Putting these observations together: the only option that matches the actual remaining time to maturity, based on original 15-year tenor minus 10 years elapsed, is 5 years. The other choices either ignore the elapsed period, assume a longer original tenor than stated, or claim a non-existent condition. In practical terms, remaining maturity is calculated as original tenor minus elapsed time since issuance, which yields 5 years for this bond.

Question at position 16 A 15-year bond was issued 10 years ago. Its tenor is equal to:A 15-year bond was issued 10 years ago. Its tenor is equal to:none of the options5 years10 years15 years

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