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Which of the following statements is correct? A. If you need a specific amount of money at a specific future date, you could invest in
Which of the following statements is correct?
A. If you need a specific amount of money at a specific future date, you could invest in a number of different kinds of bonds, but the one type of bond that you should avoid is a zero coupon bond, because such bonds do not pay any interest.
B. Other things held constant, a 10-year bond has more reinvestment risk than a 30-year bond.
C. If you need a specific amount of money at a specific future date, you should be concerned about price risk, but do not need to be concerned about reinvestment risk.
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