Consider four bonds that are similar in all features except those shown. The bond with the greatest reinvestment risk is:
　　A. 5% coupon, non-callable.
　　B. 15% coupon, callable.
　　C. 15% coupon, non-callable.
　　D. 5% coupon, callable.
　　Answer:B
　　Reinvestment risk is higher for high-coupon, long maturity bonds. In addition, callable bonds have more reinvestment risk than noncallable bonds.