Yield to Maturity Assuming Coupons Reinvested


 
Yield to Maturity > Forum Log in

Yield to Maturity Assuming Coupons Reinvested
Robert Fullsome, Accountant, United States

I'm confused by the last segment of the explanation where it says the YTM rate assumes that coupons are reinvested at the YTM rate. My question is somewhat inconsequential since if the coupons are reinvested at the YTM rate, they won't affect the yield to maturity. But the YTM calculation is essentially an IRR calculation. And the IRR calculation never assumes cash flows are reinvested. They are simply used to calculate the IRR. . 24-9-2017
 

 















 

  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Yield to Maturity
Summary
Forum
  • Yield to Maturity Assuming Coupons Reinvested

Best Practices

Expert Tips

Resources

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 22-10-2017. All names tm by their owners.