Reinvestment Risk Definition & Example - InvestingAnswers
2020年9月16日 · Why Does Reinvestment Risk Matter? Reinvestment risk is most common in bond investing, but any investment that generates cash flows exposes the investor to this risk. …
Reinvestment Rate Definition & Example - InvestingAnswers
2019年10月1日 · Reinvestment rate is a common part of bond investing, but really any investment that generates cash flows exposes the investor to the need to find good reinvestment rates. …
Call Risk Definition & Example - InvestingAnswers
2021年6月1日 · Call risk leads to reinvestment risk. In our example, XYZ Company's call provision means bondholders no longer have the promise of 10 years of 10% interest payments. So, if …
Immunization Definition & Example - InvestingAnswers
2020年9月16日 · In this example, the low reinvestment rate reduced the interest earned on the coupon payments. But the bond price rose, offsetting some of this loss. The net result was an …
Prepayment Risk Definition & Example - InvestingAnswers
2020年9月29日 · Accordingly, this mitigates some of the lender's prepayment risk, because the longer John is in his house and the more payments he makes, the more of that $100,000 in …
Putable Bond Definition & Example - InvestingAnswers
2019年10月1日 · put provisions considerably alter bond analysis because they change two dimensions of risk to bondholders. First, they lower reinvestment risk : When interest rates …
Z-Tranche Definition & Example - InvestingAnswers
2020年8月12日 · One advantage, however, is that the holder of a Z-tranche does not face much reinvestment risk —he or she will continue to accrue interest as the stated interest rate for the …
Call Provision Definition & Example - InvestingAnswers
2020年8月12日 · Call provisions considerably alter bond analysis because they add two dimensions of risk to bondholders. First, they present reinvestment risk . When interest rates …
Interest Rate Risk Definition & Example - InvestingAnswers
2020年10月5日 · However, the buy-and-hold bond investor is still exposed to the risk that interest rates will rise above the bond's coupon rate, therefore leaving the investor 'stuck' with below …
Refunding Protection Definition & Example - InvestingAnswers
2020年9月16日 · The protection lowers investors' reinvestment risk-- that is the risk that the bonds will be redeemed and investors will have to reinvest the proceeds at a lower rate. In all other …