标题: try this one from sample exam [打印本页] 作者: karoliukas 时间: 2013-4-10 09:39 标题: try this one from sample exam
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 zerocoupon bonds
D. A discount to par value as a result of market yields increasing after the bond was issued.作者: RepoToronto 时间: 2013-4-10 09:55
my answer is B.
you pay a premium for high coupon, and high coupon means high reinvestment risk
