REINVESTMENT RISK
The risk that future coupons from a bond will not be reinvested at the prevailing interest rate when the bond was initially purchased. Reinvestment risk is more likely when interest rates are declining. Reinvestment risk affects the yield-to-maturity of a bond, which is calculated on the premise that all future coupon payments will be reinvested at the interest rate in effect when the bond was first purchased. Zero coupon bonds are the only fixed-income instruments to have no reinvestment risk, since they have no interim coupon payments.
POPULAR TERMS
Yankee Market
Yankee Market is a slang term referring to a US stock market.
Bill Of Lading
A document between the shipper and the carrier telling the type, quantity and destination of the good being carried. It also serves as a receipt of ...
Empirical Probability
Probability anchored on certain events happening, computed using collected empirical evidence. It is closely connected to the relative frequency in ...
Freeganism
Freeganism is a lifestyle philosophy focused on adopting alternative means to satisfy needs in order to minimize dependence on what is termed the & ...
Controlling Interest
High enough ownership percentage to impose changes or have legal control in a company. A single shareholder or a group of shareholder owns more tha ...
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SEE FOREX TUTORIAL
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What is the Standard Moving Cost?
You concluded remodeling is expensive upon considering all important factors. So you decided to move to another house instead. But, is moving less ...
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In this tutorial, we will explore the different kinds of financial careers, the various basics of the financial industry, what you need to do in or ...
Starting Your Own Small Business: Choosing What You Want to Sell
Some people say that the only real way to get rich is by starting your own business. However, this is untrue; there are a lot of reasons to start y ...
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09:00 | Industrial Production | Jan | |
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09:00 | Trade Balance | Jan | |
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10:00 | SECO Consumer Confidence | Feb |