The Promised Yield to Maturity Calculation Assumes That

question 106

Multiple Choice

The promised yield to maturity calculation assumes that

• A) all coupon interest payments are reinvested at the current market interest rate for the bond.
• B) all coupon interest payments are reinvested at the coupon interest rate for the bond.
• C) all coupon interest payments are reinvested at short-term money market interest rates.
• D) all coupon interest payments are not reinvested.
• E) None of these are correct.

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