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1) A fixed income portfolio manager who is most concerned about reinvestment risk would prefer to invest in:   Amortizing bonds since periodic cash flows include principal repayments as well as coupon repayments

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1) A fixed income portfolio manager who is most concerned about reinvestment risk would prefer to invest in:

1. Amortizing bonds since periodic cash flows include principal repayments as well as coupon repayments.
2. Non-amortizing bonds since periodic cash flows do not include principal repayments
3. Premium bonds since the yield is higher.
4. Discount bonds since the yield is lower.
5. None of the above