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Which of the following statements is most correct? Select one: a. All else equal, 20-year AAA bonds have less reinvestment rate risk than 3-year AAA
Which of the following statements is most correct?
Select one:
a. All else equal, 20-year AAA bonds have less reinvestment rate risk than 3-year AAA bonds.
b. All else equal, bonds with 5% coupon rate have more reinvestment rate risk than bonds with 10% coupon rate.
c. All else equal, 20-year T-bonds have less price risk than 5-year T-bonds.
d. All else equal, zero coupon bonds have highest reinvestment rate risk.
e. All else equal, bonds with 5% coupon rate have less price risk than bonds with 10% coupon rate.
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