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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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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
Choosing between BTPs and STOCKS
Macroeconomic risks
Types of BTPs
Selling BTPs before maturity
Reinvestment risk of BTPs
The maturity of a BTP
Liquidity risk of BTPs
Secondary Market
Capital gains
Dividends
Buying a BTP below par
Stock Market Calendar and Trading Hours
Taxation on BTPs
What is a bond
BTPs and risks
BTPs, BOTs, CTZs and CCTs
Capital losses
Inflation and BTPs
Is it worth investing in BTPs?
Buying BTPs
MOT Market
The coupons of BTPs
The periodicity of BTPs
Credit risk of BTPs
The profit from a BTP
Interest rate risk in BTPs
Capital gains
Inflation risk of BTPs
The yield of a BTP
The price of a BTP
Selling BTPs at maturity
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Calculate earnings from fixed-rate BTPs by bringing them to maturity

Enter how much to invest in BTP and the simulator will immediately calculate the net yield by processing the purchase price, maturity of the security, coupon interest, purchase day, investment amount, 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%

Net yields with the BTP investment simulator

Calculate with the real-time simulator how much you could earn by investing in BTP. It will calculate the purchase price, maturity of the security, coupon interest, purchase date, investment amount, preferential tax rate of 12.5%

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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.
Anonymous
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Giovanna
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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
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