Reinvestment risk
The risk that money received back will have to be reinvested at a lower rate.
How to read the number
It arises with amortising bonds, with frequent coupons, and when an issuer redeems early.
Also known as: reinvestment risk
The risk that money received back will have to be reinvested at a lower rate.
It arises with amortising bonds, with frequent coupons, and when an issuer redeems early.
Also known as: reinvestment risk