单选题

Holding all other characteristics the same, the bond exposede to the greatest level of reinvestment risk is most likely the one selling at:

【正确答案】 A
【答案解析】

A bond selling at a premium has a higher coupon rate and,all else being equal,bonds with higher coupon rates face higher reinvestment risk. The reason is that the higher the coupon rate,the more dependent the bond's total dollar return will be on the reinvestment of the coupon payments in order to produce the yield to maturity at the time of purchase.