Question: Wording is a bit tricky to me in this homework question. Please help me out and give explaination. Thanks! Which of the following statements is
Wording is a bit tricky to me in this homework question. Please help me out and give explaination. Thanks!
Which of the following statements is CORRECT?
a. All else equal, high-coupon bonds have less reinvestment risk than low-coupon bonds.
b. All else equal, long-term bonds have less price risk than short-term bonds.
c. All else equal, low-coupon bonds have less price risk than high-coupon bonds.
d. All else equal, short-term bonds have less reinvestment risk than long-term bonds.
e. All else equal, long-term bonds have less reinvestment risk than short-term bonds.
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