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Investments glossary

Reinvestment Rate


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Reality is the crutch for people who can\'t cope with drugs.

— Lily Tomlin

The reinvestment rate is the amount of interest that can be earned when money is taken out of one fixed-income investment and put into another. For example, the reinvestment rate is the amount of interest the investor could earn if he purchased a new bond while holding a callable bond called due because of an interest rate decline.


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