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Finance Dictionary and Glossary of Investment Terms
The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate.
The risk resulting from the fact that interest or dividends earned from an investment may not be able to be reinvested in such a way that they earn the same rate of return as the invested funds that generated them. For example, falling interest rates may prevent bond coupon payments from earning the same rate of return as the original bond.
The risk that future proceeds will have to be reinvested at a lower potential interest rate.