Yield to Maturity

Yield to Maturity
Rate of return (in percentage) paid on a note, fixed income security or bond if it is bought and held till its maturity date. It is based on the assumption that the coupon interest paid over the bond’s life shall be reinvested at a similar rate. YTM is calculated on the basis of coupon rate, market price and time length to maturity.

Random Finance Terms for the Letter Y