Question at position 31 A 12-year bond was issued 4 years ago. Its tenor is equal to:A 12-year bond was issued 4 years ago. Its tenor is equal to:12 years 8 years4 years

Question

BlackTom AI · Accepted Answer

We start by parsing the question: a bond with a stated total tenor of 12 years was issued 4 years ago, and we are asked for its tenor now.
Option 1: 12 years. This would imply the bond still has the full original term remaining, which ignores the fact that 4 years have elapsed since issuance. Therefore this is not correct.
Option 2: 8 years. Since the original maturity is 12 years and 4 years have already passed, the remaining time until maturity is 12 − 4 = 8 years. This aligns with how bond tenors are tracked by remaining duration.
Option 3: 4 years. Describing the tenor as 4 years would imply that only 4 years have elapsed or that the bond has 4 years left while in fact 8 years remain after four years have passed since issue. This is inconsistent with the given information.
In summary, the correct interpretation is that the remaining tenor equals the original tenor minus the time elapsed since issuance, yielding 8 years. The other options misstate either the total original term or the remaining time after 4 years have passed.

Question at position 31 A 12-year bond was issued 4 years ago. Its tenor is equal to:A 12-year bond was issued 4 years ago. Its tenor is equal to:12 years 8 years4 years

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