Question: Select the true statement about reinvestment risk. a . ) Only holders of callable bonds are subject to reinvestment risk. b . ) A zero

Select the true statement about reinvestment risk.
a.) Only holders of callable bonds are subject
to reinvestment risk.
b.) A zero-coupon bond carries the greatest
reinvestment risk.
c.) Reinvestment risk increases when market
interest rates fall.
d.) Reinvestment risk is directly correlated to
interest rate risk.

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