$3$

Multiple Choice

$2$ peints

Which type of bond is more exposed to reinvestment risk?

Zero$-$coupon bonds, because they pay a lump sum at maturity.

Zero$-$coupon bonds, becaune they have no periodic payments rate rijk reliers to changes in the bonds credit rating

Typical bonds, because they pary periodic coupon payments that may need to be relinested at lower interest rates.

Boch zero$-$coupon bonds and typical bonds are equally exposed to reinvestment riak.

Clear mir selection