标题: does prepayment risk also include reinvestment risk? [打印本页] 作者: Jupiter 时间: 2011-7-11 17:42 标题: does prepayment risk also include reinvestment risk?
If a security has prepayment risk, does it also mean that it has reinvestment risk?
Edited 1 time(s). Last edit at Wednesday, April 14, 2010 at 11:32PM by jonly.作者: siavosh 时间: 2011-7-11 17:42
Yes, because if you receive a payment earlier than the specified date, then you run a risk of not being able to invest this amount at the rate you wish to (if the market interest rate declines in that time).
