I fail to understand reinvestment of coupons to calculate YTM.
I understand that YTM is the rate at which coupon payments and ParValue of the bond are discounted to today.i.e
C-Coupon & T-Time if a bond pays C1 @ T1, C2 @ T2, C3+ParValue @T3 then YTM is rate at which the price of the bond (determined by market) equals the present value of ( C1 ,C2 ,C3 + ParValue) at respective times
There is no reinvestment of C1,C2,C3 but reinvestment of the interest earned on these coupons at compounding intervals T1,T2 & T3.
So my assumption is that, if a bond is bought @ x% YTM,it will always yield x% if held till maturity irrespective of YTM in the future when the coupons are paid.