单选题 When computing the yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the: A. prevailing yield to maturity at the time interest payments are received. B. yield to maturity at the time of the investment. C. current yield.

【正确答案】 B

【答案解析】The reinvestment assumption states that reinvestment must occur at the YTM in order for an investor to earn the YTM. The assumption also states that payments are received in a prompt and timely fashion resulting in immediate reinvestment of those funds.