When Computing Yield to Maturity, the Implicit Reinvestment Assumption Is

question 8

Multiple Choice

When computing yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the

• A) coupon rate.
• B) current yield.
• C) yield to maturity at the time of the investment.
• D) prevailing yield to maturity at the time interest payments are received.
• E) the average yield to maturity throughout the investment period.

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