1.   Implicit in the definition of YTM is the assumption that coupon payments are reinvested at the YTM.

2.   As rates rise, many investors prefer bonds that pay interest because they can reinvest those payments at higher and higher rates.

3.   During the past three months, Australia, Canada and U.S. bonds posted the best total returns, or price appreciation plus reinvested coupon payments.

4.   Over the past three months, bond markets in the U.S., Australia and Canada posted the best total returns, or price appreciation plus reinvested coupon payments.

5.   So, he plugged the numbers into his computer, assuming that interest payments were reinvested in six-month Treasury bills.