Consider the following statements about bond reinvestment risk and bond duration (interest rate risk):
I.Lower bond reinvestment implies higher interest rate risk (duration), ceteris Paribus (assuming other conditions unchanged).
II.Due to reinvestment risk, the yield-to-maturity on a bond is unlikely to equal the bond’s realized return.
III.Reinvestment risk is eliminated in a zero-coupon bond.
Which of the above statements is true?
A
I and II
B
I and III
C
II and III
D
老师，bond's realized return如何理解？它与ytm的关系？
