If the issuer calls the bond it is likely to be because interest rates have fallen. The owner of the bond is exposed to reinvestment risk because it will receive lower returns when it reinvests the cash paid out by the issuer to redeem the bonds.
If the issuer calls the bond it is likely to be because interest rates have fallen. The owner of the bond is exposed to reinvestment risk because it will receive lower returns when it reinvests the cash paid out by the issuer to redeem the bonds.