This note comments on a misconception that yield to maturity from
holding a coupon bond until maturity is only promised, but not really
received, unless coupon payments are reinvested at the same rate as the
(original) yield to maturity. It shows that yield to maturity is always
earned no matter how coupon payments are allocated – spent or
reinvested at any rate. It illuminates that the realized compounding yield
in fact measures the yield to maturity from a combination of two
investments rather from simply holding the bond itself until maturity.