单选题

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

【正确答案】 C
【答案解析】

C is correct because a bond selling at a premium has a higher coupon rate and, all else the same, bonds with higher coupon rates face higher reinvestment risk. This is because 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.