Reinvestment risk

The proceeds from an investment may have to be reinvested at a lower rate than the rate available from the investment itself.

The reinvestment risk for callable bonds and amortizing bonds is higher than bullet bonds. Zero coupon bonds have no reinvestment risk.

It is required to balance reivestment risk against price risk - if interest rate decline, price rise which helps to offset the losses in reinvesting coupon payments at lower market int rate.