标题: try this one from sample exam [打印本页] 作者: joemoran 时间: 2013-4-10 17:36 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: dece2011 时间: 2013-4-10 17:36
B.
The higher the coupon, the more to reinvest.作者: strikethree 时间: 2013-4-10 17:37
Correct answers, And I somewhat understand where you’re coming from. But whether you’re selling at a premium or a discount coupon is still the same, so wouldn’t a bond selling at a discount mean that a bigger portion of your investment is the coupon and therefore you have larger reinvestment risk?
