Answer the following questions supporting your answers with examples if possible.

1. Explain why the total return from holding a bond to maturity will be between the yield to maturity and the reinvestment rate.
2. 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?
3. What are the limitations of using duration as a measure of a bonds price sensitivity to interest rate changes?
4. Does convexity of a bond have investment implications? Carefully reason out your answer.