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  • warning: Parameter 2 to ad_flash_adapi() expected to be a reference, value given in /var/www/vhosts/rustonleader.com/httpdocs/includes/module.inc on line 497.
  • warning: Parameter 2 to ad_flash_adapi() expected to be a reference, value given in /var/www/vhosts/rustonleader.com/httpdocs/includes/module.inc on line 497.
  • warning: Parameter 2 to ad_flash_adapi() expected to be a reference, value given in /var/www/vhosts/rustonleader.com/httpdocs/includes/module.inc on line 497.
  • warning: Parameter 2 to ad_flash_adapi() expected to be a reference, value given in /var/www/vhosts/rustonleader.com/httpdocs/includes/module.inc on line 497.
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Editor’s note: This is the final of a three-part series on the basics of investing money.

• Reinvestment risk — The yield-to-maturity calculation assumes reinvestment of semi-annual income at the stated or coupon rate. A zero-coupon bond is exempt from reinvestment risk, because it is structured to compound at the stated rate of return. (More on zero-coupon bonds below.)

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