Yield to Maturity Assuming Coupons Reinvested




Yield to Maturity
Knowledge Center

Translate

Forum
1
Robert Fullsome
Accountant, United States

Yield to Maturity Assuming Coupons Reinvested

🔥NEW 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. .

   

More on Yield to Maturity:
Summary
Discussion Topics
👀Yield to Maturity Assuming Coupons Reinvested
Special Interest Group

Do you know a lot about Yield to Maturity? Become our SIG Leader

Yield to Maturity
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.1 - Last updated: 2-4-2023. All names of their owners.