Bond 1 is a 6%, 5-year bond, and Bond 3 is a 4%, 5-year bond. Both
bonds yield 5%. Bond 1 has a higher reinvestment income per total
dollar return than bond 3. What would explain the difference in the
rates of reinvestment income for these two bonds?
A. Bond 1 is a premium bond and is more dependent on reinvestment
income to offset the capital loss, while Bond 3 has a longer maturity.
B. Bond 3 is a discount bond and is less dependent on reinvestment
income because of the capital gain, while Bond 1 has a longer maturity.
C. The longer time to maturity for Bond 3 generates greater compounding with the same yield.
D. Bond 1 is a premium bond and is more dependent on reinvestment
income to offset the capital loss, while Bond 3 is a discount bond and
is less dependent on reinvestment income because of the capital gain.
Correct Answer: D.
谁可以解释一下吗?
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发表于 2009-3-26 07:30
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