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Which of the following statements is CORRECT? A 10-year, zero coupon bonds have more reinvestment risk than a 10-year, 10% coupon bonds. A 10-year, 10%

Which of the following statements is CORRECT?

A 10-year, zero coupon bonds have more reinvestment risk than a 10-year, 10% coupon bonds.

A 10-year, 10% coupon bond has less reinvestment risk than a 10-year, 5% coupon bond (assuming all else equal). The price of a 20-year, 10% bond is less sensitive to changes in interest rates than the price of a 5-year, 10% bond.

A 3-year 10% coupon bond has more reinvestment risk than a 10-year zero coupon bond.

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