If you own an investment providing periodic returns, your actual yield on the investment will depend on the reinvestment rate you are able to obtain.

Question

Quizplus · Accepted Answer

The reinvestment rate refers to the rate at which you can reinvest the periodic returns of your investment. The actual yield you earn will be influenced by this rate as it will impact the overall return you receive over time. Therefore, the statement is true.

If You Own an Investment Providing Periodic Returns, Your Actual