52、For bonds that have the same maturity date and same yield to maturity, the reinvestment risk for an investor holding the bonds to maturity is greatest for the bonds that are selling at:

A. par value.

B. a premium to par value.

C. a discount to par value as a result of the bonds being issued as zero-coupon bonds.

D. a discount to par value as a result of market yields increasing after the bond was issued.

Correct answer = B

"Risks Associated with Investing in Bonds," Frank J. Fabozzi
2008 Modular Level I, Vol. 5, pp. 276-277
Study Session 15-63-i
identify the factors that affect the reinvestment risk of a security and explain why prepayable amortizing securities expose investors to greater reinvestment risk than nonamortizing securities
Holding maturity and yield constant, bonds selling at a premium would have the highest coupon payments and the highest amount requiring reinvestment. The reinvestment income has to make up the capital loss that will be realized if the bond is held to maturity. 

52、For bonds that have the same maturity date and same yield to maturity, the reinvestment risk for an investor holding the bonds to maturity is greatest for the bonds that are selling at:

A. par value.

B. a premium to par value.

C. a discount to par value as a result of the bonds being issued as zero-coupon bonds.

D. a discount to par value as a result of market yields increasing after the bond was issued.

[此贴子已经被作者于2008-11-7 13:06:58编辑过]