Question

All else equal, long-term bonds have less price risk than short-term bonds. b. All else equal, low-coupon bonds have less price risk than high-coupon bonds. c. All else equal, long-term bonds have less reinvestment risk than short-term bonds. d. All else equal, short-term bonds have less reinvestment risk than long-term bonds. e. All else equal, high-coupon bonds have less reinvestment risk than low-coupon bonds.

Answer 1

Answer:

c. All else equal, long-term bonds have less reinvestment risk than short-term bonds.

Explanation:

• Bond is a financial obligation that runs for at least five and much longer time peroid. They can be fixed, floating and exchangeable bonds.