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Calculate the net yield of BTP
With the BTP investment simulator you can discover in real time how much you can earn by purchasing BTPs today and bringing them to maturity

Reinvestment risk of BTPs

The impossibility of reinvesting the coupon flows at a rate comparable to the current one.

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BTP training

Reinvestment risk of BTPs
Reinvestment risk refers to the possibility that an investor will not be able to reinvest cash flows, such as the coupons received from BTPs (Buoni del Tesoro Poliennale), at an interest rate equal to or better than the original one. Here is an in-depth analysis of this risk:

Reinvestment Risk in BTPs
  1. Cash Flows: BTPs pay semi-annual coupons. If interest rates are falling, when you receive these coupons, it may not be possible to reinvest them at equivalent rates, reducing the overall return on your investment.
  2. Interest Rates: In an environment of falling interest rates, the return you can obtain by reinvesting the coupons will be lower than the original yield of the BTP. This can erode the expected total return.
  3. Investment Duration: Reinvestment risk is more relevant for long-term investors, as they may receive multiple coupons over the life of the security.
Risk Mitigation
  • Diversification: Investing in various financial instruments can help balance reinvestment risk. Some instruments may offer higher interest rates.
  • Financial Planning: Having a well-defined reinvestment strategy and monitoring interest rates can help you make more informed decisions.
Conclusion
Reinvestment risk is an important factor to consider when investing in BTPs and other fixed income instruments. Being aware of this risk will help you better plan your investments and maximize your overall return.

Information on BTPs

Choose a topic from the list below and learn more about it
Credit risk of BTPs
The maturity of a BTP
Capital gains
Reinvestment risk of BTPs
Capital gains
MOT Market
Is it worth investing in BTPs?
Taxation on BTPs
Selling BTPs at maturity
Liquidity risk of BTPs
Dividends
BTPs, BOTs, CTZs and CCTs
Choosing between BTPs and STOCKS
Buying a BTP below par
Inflation risk of BTPs
Selling BTPs before maturity
Inflation and BTPs
The price of a BTP
The periodicity of BTPs
BTPs and risks
Macroeconomic risks
What is a bond
Secondary Market
Buying BTPs
The coupons of BTPs
The profit from a BTP
The yield of a BTP
Interest rate risk in BTPs
Stock Market Calendar and Trading Hours
Capital losses
Types of BTPs
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How much do BTPs yield

Enter how much to invest in BTPs and the simulator will immediately calculate the net return by processing the purchase price, maturity of the security, coupon interest, purchase date, investment amount, reduced taxation of 12.5%

What are the 5% BTPs?

Enter how much to invest in BTPs in the simulator and the net yield will be calculated immediately by processing the purchase price, maturity of the security, interest on the coupons, day of purchase, amount of the investment, reduced taxation of 12.5%

Online BTP investment simulator

Find out how much you can earn by investing in BTPs. The simulator will immediately calculate the net yield by processing the purchase price, maturity of the security, interest on the coupons, purchase day, amount of the investment, preferential taxation of 12.5%

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What they say about us

And what do you think of BTPfacile.it? Contact us by email
Giuseppe
The BTP yield simulator is useful, it also provides updated information on the best BTPs to buy based on various parameters such as maturity, market price and coupons.
Ettore
I've been using BTPfacile.it for some time and can confidently say it's one of the most useful and intuitive tools for those who want to invest in Italian government bonds (BTPs) with an informed mind. The site is clear, fast, free, and displays the average annual net yield in just a few seconds, something that's often difficult to understand with official data. Thanks to BTPfacile.it's BTP investment simulator and the ability to filter by maturity, type, and yield, I can always find the right security for my needs. I regularly recommend it to friends and family, even those with little investment experience: everyone finds it simple to use and very helpful in understanding what they're really buying. Congratulations to the team: you're doing a great job!
David
I think BTPfacile.it is a great tool for those interested in investing in BTPs. The site offers useful features such as an investment simulator, which allows you to calculate net returns in real time, helping investors make informed decisions. In addition, the platform is intuitive and easy to use, making it accessible even to those who do not have much experience in the investment field.
Disclaimer
All information displayed on BTPfacile.it is to be considered for informational purposes only and does not constitute in any way an investment, savings, legal or tax advice. The data displayed is generated by our systems automatically and despite our continuous commitment to offering the best possible service and the best online BTP investment simulator, we do not guarantee the accuracy of the information and we do not assume any responsibility regarding the use of the information itself
The BTPfacile.it team
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