The main underlying assumptions used concerning the traditional yield measures are:
1. The bond will be held to maturity.
2. Coupons can be reinvested at the yield to maturity
Limitations:
1. Current yield Current yield only considers the coupon interest and no other sources for an investors return. It does not take into consideration the capital gain when a bond is purchased at a discount or the capital loss when the bond is purchased at a premium. Also, reinvestment income is not taken into consideration.
2. Yield to Maturity  Yield to maturity measures assume that the coupon payments will be reinvested at the coupon rate
3. Yield to Call  Yield to call assumes investor will hold the bond to the assumed call price and that the issuer will call the bond on that date which both are unrealistic. Also, the comparison of different yields to call with the YTM are meaningless because the cash flows stop once the issuer calls the bond.
4. Yield to Put  This assumes that coupon payments will be reinvested at the calculated yield and that the bonds will be put on the first date.
5. Yield to Worst  This measure does not identify the potential return over some time horizon and fails to take into account that the calculation for a YTW has different exposures to reinvestment risk.
6. Cash Flow Yield  Cash flow yield assumes that the coupons will be reinvested at the coupon rate and that the bond will be held to maturity. However, because cash flow yield tend to be used for MBSs or ABSs there is a risk that the bonds will be prepaid and the measure of cash flow yield will be thrown out the window.
Importance of Reinvestment Income and Reinvestment Risk

Investing
Understanding the Different Types of Bond Yields
Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment. 
Financial Advisor
Simple Math for FixedCoupon Corporate Bonds
A guide to help to understand the simple math behind fixedcoupon corporate bonds. 
Investing
What is Reinvestment Risk?
Reinvestment risk refers to the risk that a bond’s future coupons will have to be reinvested at a lower interest rate. 
Investing
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
Investing
Calculating Yield to Worst
Yield to worst is the lowest possible yield on a bond that may be called in the future. 
Investing
If I Buy A $1,000 10Year Bond With A 10% Coupon, Will I Receive $100 Each Year?
Investors can count on a fixedincome security paying them a certain amount of cash as long as the security is held until maturity and the issuer doesn’t default. 
Investing
5 Basic Things To Know About Bonds
Learn these basic terms to breakdown this seemingly complex investment area. 
Investing
Interest Rates, Inflation and the Bond Market
Interest rates, bond prices and inflation all have an impact on one another. 
Investing
Calculating Bond Equivalent Yield
The bond equivalent yield calculates the semiannual, quarterly or monthly yield on a discount bond or note.