Which of the following statements is most correct?
A) All else equal, long-term bonds have more interest rate risk than short term bonds.
B) All else equal, higher coupon bonds have more reinvestment risk than low coupon bonds.
C) All else equal, short-term bonds have more reinvestment risk than do long-term bonds.
D) Statements a and c are correct.
E) All of the statements above are correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is most correct?
A) All else equal, long-term bonds have more interest rate risk than short term bonds.
B) All else equal, higher coupon bonds have more reinvestment risk than low coupon bonds.
C) All else equal, short-term bonds have more reinvestment risk than do long-term bonds.
D) Statements a and c are correct.
E) All of the statements above are correct.

Which of the Following Statements Is Most Correct