Which Statement Regarding Reinvestment Rate Risk Is True

question 81

Multiple Choice

Which statement regarding reinvestment rate risk is true?

• A)All else equal, high-coupon bonds have less reinvestment rate risk than low-coupon bonds.
• B)All else equal, low-coupon bonds have less reinvestment rate risk than high-coupon bonds.
• C)All else equal, short-term bonds have less reinvestment rate risk than long-term bonds.
• D)All else equal, long-term bonds have less reinvestment rate risk than short-term bonds.

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