Which statement regarding bonds is true?

A) 10-year, zero coupon bonds have higher reinvestment rate risk than 10-year, 10% coupon bonds.
B) A 10-year, 10% coupon bond has less reinvestment rate risk than a 10-year, 5% coupon bond (assuming all else is equal) .
C) The total return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning to the end of the year.
D) The price of a 20-year, 10% bond is less sensitive to changes in interest rates than the price of a 5-year, 10% bond.

The total return on a bond during a given year is composed of two parts: the coupon interest payments received during the year and the change in the value of the bond from the beginning to the end of the year. The other statements are false. A) 10-year, zero coupon bonds have lower reinvestment rate risk because there are no coupon interest payments to reinvest. B) A 10-year, 5% coupon bond has less reinvestment rate risk than a 10-year, 10% coupon bond because it has lower coupon payments to reinvest. D) The price of a bond is generally more sensitive to changes in interest rates, the longer the bond's maturity. Therefore, the price of a 20-year, 10% bond is more sensitive to changes in interest rates than the price of a 5-year, 10% bond, making this statement false.