Briefly explain the difference between price and reinvestment risk.

a. Rank the following bonds from the highest price risk to the lowest price risk.

b. Rank the same bonds from the highest reinvestment risk to te lowest reinvestment risk.

1. A one-year bond with a 8% annual coupon

2. A 7-year bond with a 8% annual coupon

3. A 7-year bond with a zero coupon

4. A 12-year bond with a 8% annual coupon

5. A 12-year bond with a zero coupon.