Coupon reinvestment risk, breaking down 'reinvestment risk'
Reinvestment Risk By Investopedia Share.
Visit performance for information about the performance numbers displayed above. This page was last edited on 10 Decemberat Reinvesting dividends is almost always a good idea if you intend to hold your shares for the long term, and there are several ways to do it.
Yield vs Price A fixed-rate bond has a stated, unchanging coupon payment it disburses every period -- for instance, T-Bonds pay interest semi-annually. The price of a fixed-rate bond will rise and entice some holders to sell the bond for a profit.