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 future interest payments will have to be reinvested at a lower interest rate, resulting in lower returns.

Which of the Following Terms Means the Chance That Future