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Which statement is correct? Long-term bonds have lower interest rate risk than short-term bonds. Short-term bonds have lower reinvestment rate risk than long-term bonds. If
Which statement is correct? Long-term bonds have lower interest rate risk than short-term bonds. Short-term bonds have lower reinvestment rate risk than long-term bonds. If a bond s yield to maturity exceeds its coupon rate, the bond will sell at a premium over par. All else equal, if a bond s yield to maturity increases, its price will fall. The higher the probability of default, the lower the yield to maturity will be.
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