Reinvestment Risk Definition | Becker

Accounting Dictionary

Reinvestment Risk

Reinvestment risk is the risk that intermediate cash flows from a bond (interest payments or proceeds from a bond refunding) will have to be invested at a lower interest rate than the original bond (if interest rates have decreased in the meantime). See also interest rate risk and credit risk.

Related Terms:

Interest Rate Risk [BAR]Credit Risk [BAR]Back to Dictionary

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