Concerning reinvestment of interest on a bond,
a. What assumption is made about reinvestment of cash flows when using the yield to maturity?
b. What characteristics of a bond affect its reinvestment risk?
Question 20.8: Concerning reinvestment of interest on a bond, a. What assum...
a. We are assuming that each cash from is reinvested immediately in a similar yield investment.
b. Coupon rate and maturity.
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