Which one of the following bonds has the greatest reinvestment risks?

Question

a. 3-year; 0 percent coupon
b. 3-year; 6 percent coupon
c. 10-year; 0 percent coupon
d. 10-year; 6 percent coupon

Answer 1

C 10 year zero coupon its duration is 10

Duration of the other assets

A = 3

B = <3

D= <10