Question: A) Explain why the total return from holding a bond to maturity will be between the yield to maturity and the reinvestment rate. B) For

A) Explain why the total return from holding a bond to maturity will be between the yield to maturity and the reinvestment rate.

B) For a long-term high-yield coupon bond, do you think that the total return from holding a bond to maturity will be closer to the yield to maturity or the reinvestment rate?

C) What are the limitations of using duration as a measure of a bonds price sensitivity to interest rate changes?

D) Does convexity of a bond have investment implications? Carefully reason out your answer.

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