Which of the following statements is CORRECT?
A. All else equal, high-coupon bonds have less reinvestment risk than low-coupon bonds.
B. All else equal, long-term bonds have less price risk than short-term bonds.
C. All else equal, low-coupon bonds have less price risk than high-coupon bonds.
D. All else equal, short-term bonds have less reinvestment risk than long-term bonds.
E. All else equal, long-term bonds have less reinvestment risk than short-term bonds.
Answer: E
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