CFA Practice Question

There are 266 practice questions for this study session.

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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