koba

Yes ov25, you are totally right on understanding Premium as being a yield related term.

But here, it is saying there are 2 bonds with same Maturity and Yield. One is selling at a Premium and another is selling at Par. Which one would be paying a higher coupon?

The one selling at Premium would surely have in it a higher premium, cause other things (Yield and Maturity are same for both). Correct?

Now, higher the coupon, higher would be the re-investment risk. You have already got this part.