Which of the Following Statements Is CORRECT

Multiple Choice

Which of the following statements is CORRECT?

A) Long-term bonds have less interest rate price risk but more reinvestment rate risk than short-term bonds.
B) If interest rates increase, all bond prices will increase, but the increase will be greater for bonds that have less interest rate risk.
C) Relative to a coupon-bearing bond with the same maturity, a zero coupon bond has more interest rate price risk but less reinvestment rate risk.
D) Long-term bonds have less interest rate price risk and also less reinvestment rate risk than short-term bonds.
E) One advantage of a zero coupon Treasury bond is that no one who owns the bond has to pay any taxes on it until it matures or is sold.