Which term refers to the risk that interest income will decrease as maturing assets are replaced with new, more current assets?

Question

Quizplus · Accepted Answer

Reinvestment risk refers to the possibility of earning less on reinvested funds due to a drop in interest rates or other market factors. As assets mature or are redeemed, the investor must find new assets to replace them, and in a falling interest rate environment, the income generated by those new assets may be lower.

Which Term Refers to the Risk That Interest Income Will