Advertisement

JL Wee

15 Apr 2020

∙

General Investing

For bonds, should I yield to maturity without making the assumption of reinvesting coupon payout?

I found out that bonds YTM has the assumption that you will reinvest the coupon amount with a similar return rate. However, I find that this is quite an assumption and would like to ask is it better if we gauge the YTM without assuming the reinvestment component?

3

Discussion (3)

What are your thoughts?

Learn how to style your text

YT

11 Apr 2020

It will have to depend on the type of bond you are investing in. If you invested in a bond that re-invests the coupons instead of paying it out, you can just follow the YTM.

Reply

Save

View 2 replies

Write your thoughts

Related Posts

What exactly is yield to maturity? How are bonds priced in? I am trying to understand the differences between coupon rate and yield to maturity?

Do the SSB prices fluctuate during the maturity period? Is it possible if I bought the bonds for 500$ then during the coupon payment period prices go up and down and I call sell to book profit ? How long is the maturity of these bonds? Thanks!

Hi, for the risk-free rate in the CAPM formula. Should i use the market yield or the coupon rate of the 10 -year bond as the risk free rate ?

Regarding Manulife ready payout plan, can I terminate the plan early before maturation, am I able to get full refund of my own savings without interest?

How is Astrea VI bonds the coupon payout?

Related Posts

What exactly is yield to maturity? How are bonds priced in? I am trying to understand the differences between coupon rate and yield to maturity?

Do the SSB prices fluctuate during the maturity period? Is it possible if I bought the bonds for 500$ then during the coupon payment period prices go up and down and I call sell to book profit ? How long is the maturity of these bonds? Thanks!

Hi, for the risk-free rate in the CAPM formula. Should i use the market yield or the coupon rate of the 10 -year bond as the risk free rate ?

Regarding Manulife ready payout plan, can I terminate the plan early before maturation, am I able to get full refund of my own savings without interest?

How is Astrea VI bonds the coupon payout?

Advertisement