reinvestment risk
Definition
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.
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Related Terms
split coupon bond, zero-coupon bond
'reinvestment risk
' appears in the definitions of these terms on BusinessDictionary.com
risk
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