Yield to Maturity
The term used to describe the rate of return an investor will receive if a long-term, interest-bearing security, such as a bond, is held to its maturity date. Yield to maturity (YTM) can be determined by using a bond yield table or a calculator equipped for bond calculations. It is greater than the coupon rate if the bond is selling at a discount and less than the coupon rate if it is selling at a premium.
Sponsored Links