Which of the following statements is CORRECT?

a. Reinvestment rate risk is worse from an investor's standpoint than interest rate price risk if the investor has a short investment time horizon.

b. If a 10-year, $1,000 par,zero coupon bondwere issued at a price that gave investors a 10% yield to maturity, and if interest rates then dropped to the point where rd= YTM = 5%, the bond would sell at a premium over its $1,000 par value.

c. If a 10-year, $1,000 par, 10% coupon bond were issued at par, and if interest rates then dropped to the point where rd= YTM = 5%, we could be sure that the bond would sell at a premium above its $1,000 par value.

d. Other things held constant, acallablebond would have a lower required rate of return than a noncallable bond.

e. Other things held constant, a corporation would rather issuenoncallablebonds than callable bonds.