Which of the following terms means the chance that future interest payments will have to be reinvested at a lower interest rate?
A) credit quality risk
B) interest rate risk
C) liquidity rate risk
D) reinvestment rate risk

Question

Quizplus · Accepted Answer

Reinvestment rate risk refers to the risk that the cash flows (such as interest payments) from an investment will have to be reinvested at a lower interest rate, potentially reducing the investor's income or return.

Which of the Following Terms Means the Chance That Future