Immunization question

CFA Level III
#1

from a BB. The ummunizaiton target rate of return is less than the Yield to Maturity.

Only true if the yield curve is upward sloping. If the yield curvei s downward sloping, then this statement is not true as the immunizaiton target rate of return would exceed he YTM because of the higher reinvestment rate.

Can someone please explain that? Thanks!

#2

In upward sloping yield curve, the required return is less than the YTM because you can reinvest the coupons at higher rates. The opposite applies when the yield curve is inverted.