@vincentt @RaviVooda
I don't understand the following in relation to immunisation. Please help...
- For an upward sloping yield curve, immunisation target rate of return < YTM because of the lower reinvestment return.
- For a downward sloping yield curve, the immunisation target rate of return > YTM because of the higher reinvestment return.
Wouldn't the coupons be reinvested at the short term rates available at the time? How to link the coupons with the slope of yield curve as the coupons are due at different times? ...confused
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