Bonds & Fixed Income
2 terms
RBI Retail Direct
Bonds & Fixed Income
qualitative
A Reserve Bank platform allowing individuals to buy government securities directly, without an intermediary.
Test: the individual holds a Retail Direct Gilt account with the Reserve Bank and participates in primary auctions or secondary trading
Reinvestment Risk
Bonds & Fixed Income
%
The risk that coupons or maturing principal must be reinvested at rates lower than the original investment earned.
Test: the realised return falls below the original yield to maturity because intermediate cash flows were reinvested at lower rates