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YTM math vs. reality
The Yield to Maturity (YTM) you see in your app assumes you will reinvest all coupons at the same rate. This is a dangerous assumption.
In reality, market rates change. When it comes time to reinvest a coupon, the market may offer a yield significantly lower than the one at the time of the first bond purchase. A fixed-rate deposit for the entire term frees you from this uncertainty, guaranteeing yield without the need to constantly look for reinvestment options.
#investing #analytics