CFA Practice Question

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CFA Practice Question

The actual yield to maturity earned at the end of the bond's life may differ from the expected yield to maturity at purchase because of ______.
A. interest rate risk
B. interest volatility
C. reinvestment rate risk
Explanation: The coupon reinvestment rate need to be the same as the expected YTM.

User Contributed Comments 1

User Comment
Pooh 2 key factors of reinvestment risk: maturity & coupon rate
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