The Promised Yield to Maturity Calculation Assumes That

question 72

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 the above

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