Reinvestment Risk: Bonds
When a significant portion of a bond investor’s revenue is dependent upon reinvesting coupon payments, it becomes essential to understand and assess reinvestment risk. Explore the difference between yield to maturity and realized compound yield in this introduction to reinvestment risk.
Select the Slide Deck for a guided assignment on this topic. Then use the Link to Platform to try the exercise yourself. Your instructor may have additional guidance regarding the use of this Teaching Tool.