Reinvestment Assumption in real life
I want to ask about the reality of the re-investment assumption. The 10 Year Treasury is currently at 3.09%, however, you assume you earn that yield if you reinvest the coupons at a 3.09% rate. I just want to ask, in reality, do you find such a rate to reinvest those coupons and where do you usually re-invest them? Or is my reasoning with respect to fixed income incorrect?
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.