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Bond A is a non-callable 12% coupon bond that matures in 4 years. Bond B is also non-callable and carries a 12% coupon rate, but

Bond A is a non-callable 12% coupon bond that matures in 4 years. Bond B is also non-callable and carries a 12% coupon rate, but matures in 10 years. All else being equal, Bond B has a higher degree of reinvestment risk than bond A.

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