REINVESTMENT RATE

Reinvestment Rate: translation

The amount of interest that can be earned when money is taken out of one fixed-income investment and put into another. The reinvestment rate is the amount of interest the investor could earn if s/he purchased a new bond, if the same investor is holding a callable bond that is called due because interest rates have declined. If the original bond paid 5% and the new bond pays 3%, the reinvestment rate is 3%.

The possibility of such an interest-rate drop is called "reinvestment rate risk".

Anticipated reinvestment rates play a role in investors' decisions about what term to select when purchasing a bond or CD. An investor who expects interest rates to rise might select a shorter-term investment, under the assumption that the reinvestment rate when the bond or CD matures will be higher than the interest rates that can be locked into on longer-maturity investments today.

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REINVESTMENT RISK →← REINVESTMENT

Смотреть что такое REINVESTMENT RATE в других словарях:

REINVESTMENT RATE

фин. ставка реинвестированияа) (ставка доходности, по которой могут быть реинвестированы процентные, дивидендные или другие доходы от первоначальных и... смотреть

REINVESTMENT RATE

Reinvestment rate: translation The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that ... смотреть

REINVESTMENT RATE

reinvestment rate: translation The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of t... смотреть

REINVESTMENT RATE RISK

фин. риск ставки реинвестирования* (вероятность того, что фактический доход будет меньше ожидаемого из-за реинвестирования основной суммы долга или на... смотреть

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