Callable Bonds: Reinvestment Risk Explained
https://youtu.be/FInRnCmrYDM
A callable bond can return cash when reinvestment gets harder #Shorts
A callable bond can return your principal just when comparable income becomes harder to find. Imagine a bond with one thousand dollars of face value pays a six percent annual coupon. That means sixty dollars of annual coupon income. Assume its terms permit a call at par and the issuer redeems it. If you reinvest that thousand dollars at four per...
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