n NISM Certifications
NSM General NISM
Medium

Yield to Maturity (YTM) is not a completely satisfactory measure of return because ________.

Practice question from NISM Series IV - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It assumes a flat term structure (Correct)

  2. B

    It assumes reinvestment at YTM itself (Correct)

  3. Both 1 and 2 (Correct)

    Correct answer

  4. D

    None of the above

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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