Question: Question 18 2 pts Select the answer/answers that is/are correct. (this question worth 2 points). If the YTM is higher than the reinvestment rate then

 Question 18 2 pts Select the answer/answers that is/are correct. (this

Question 18 2 pts Select the answer/answers that is/are correct. (this question worth 2 points). If the YTM is higher than the reinvestment rate then the bond will have total/realized return that is lower than the YTM. If we know only the maturity of a zero coupon bond, we can calculate the bond's duration Everything else equal, Bond A will have shorter duration than bond B if bond B has higher coupon rate than bond A If we know only the duration and the face value of the bond we can calculate the future value of the bond's coupons. If you want to avoid both the reinvestment risk and the price risk you can purchase a 3-year zero coupon bond and keep it until maturity

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