When Computing Yield to Maturity,the Implicit Reinvestment Assumption Is That

question 20

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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