Which of the following statements is CORRECT? Answer All else equal, high-coupon

Question

Which of the following statements is CORRECT?
Answer
All else equal, high-coupon bonds have less reinvestment rate risk than low-coupon bonds.
All else equal, long-term bonds have less interest rate price risk than short-term bonds.
All else equal, low-coupon bonds have less interest rate price risk than high-coupon bonds.
All else equal, short-term bonds have less reinvestment rate risk than long-term bonds.
All else equal, long-term bonds have less reinvestment rate risk than short-term bonds.

Explanation / Answer

All else equal, long-term bonds have less reinvestment rate risk than short-term bonds.

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