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Which of the following bond s has the most reinvestment risk ? Explain why. 9% 10% %Change A 1-year bond with a 9% annual coupon
Which of the following bonds has the most reinvestment risk? Explain why.
| 9% | 10% | %Change | |
| A 1-year bond with a 9% annual coupon | $1,000.00 | $990.91 | -0.91% |
| A 5-year bond with a 9% annual coupon | $1,000.00 | $962.09 | -3.79% |
| A 5-year bond with a zero coupon | $649.93 | $620.92 | -4.46% |
| A 10-year bond with a 9% annual coupon | $1,000.00 | $938.55 | -6.14% |
| A 10-year bond with a zero coupon | $422.41 | $385.54 | -8.73% |
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ISE Foundations Of Financial Management
Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
18th International Edition
1265074658, 9781265074654
