call risk

call risk definition - finance
A lenderÂ’s potential opportunity loss associated with premature repayment of principal on a debt instrument. Call risk is a reinvestment risk, because it is usually impossible to reinvest the funds in a similar instrument with an equal yield.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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