FT MarketWatch

Reinvestment risk

The Risk resulting from the fact that Interest or dividends earned from an investment may not be able to be reinvested in such a way that they earn the same rate of Return as the invested funds that generated them. For example, falling Interest rates may prevent bond Coupon payments from earning the same rate of Return as the original bond.

Related Terms: 7 Coupon, Fund, Interest, Interest rate, Return, Risk, Rate of return
Other Related Pages: Category: Trading Starting With: R
Semi Related Terms: 776 CLICK HERE TO VIEW
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