A bond’s yield to maturity (YTM) is the expected rate of return on a bond if what three conditions are true?

Interview Question: A bond’s yield to maturity (YTM) is the expected rate of return on a bond if what three conditions are true?

Answer:

1) Promised coupons are paid.

2) Coupons are reinvested at the same rate as the YTM. This condition is unlikely.

3) The bond is held until maturity.

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