Yield To Maturity - YTM


Yield To Maturity - YTM
The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate. Sometimes this is simply referred to as "yield" for short.

An approximate YTM can be found by using a bond yield table. However, because calculating a bond's YTM is complex and involves trial and error, it is usually done by using a programmable business calculator.


Investment dictionary. . 2012.

Look at other dictionaries:

  • yield to maturity — n. The return that an investor will receive from a bond held until it matures. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • yield to maturity — pelningumas iki išpirkimo statusas T sritis turto vertinimas apibrėžtis Metinė iki išpirkimo dienos išlaikytos obligacijos grąžos norma, atsižvelgiant į esamą rinkos kainą, jos nominaliąją vertę, atkarpos palūkanų normą ir iki išpirkimo likusį… …   Lithuanian dictionary (lietuvių žodynas)

  • yield to maturity — the total rate of return to an owner holding a bond to maturity expressed as a percentage of cost * * * Finance. the rate of return on a bond expressed as a percentage that accounts for the difference between the interest earned based on current… …   Useful english dictionary

  • yield to maturity — Finance. the rate of return on a bond expressed as a percentage that accounts for the difference between the interest earned based on current market value and that earned if the bond is held to maturity. Also called maturity yield. * * * …   Universalium

  • yield to maturity — /ˌji:ld tə mə tjυərɪti/ noun a calculation of the yield on a fixed interest investment, assuming it is bought at a certain price and held to maturity …   Dictionary of banking and finance

  • Yield to maturity —   The internal rate of return yielded by a financial instrument held to maturity …   International financial encyclopaedia

  • yield to maturity — See: gross redemption yield …   Accounting dictionary

  • yield to maturity — See gross redemption yield …   Big dictionary of business and management

  • yield to maturity —   tasso interno di rendimento   Il significato di tasso interno di rendimento indica il tasso di sconto in corrispondenza del quale il valore attuale dei flussi di cassa di una attività è uguale al prezzo dell attività stessa praticato sul… …   Glossario di economia e finanza

  • annual real yield to maturity — index used to estimate whether or not it is worthwhile to invest in a company or firm via the taking into account of the affects of changes in the index …   English contemporary dictionary

  • annual yield to maturity — annual interest on the turnover on a bond (method for calculating the profitability of investment in a bond) …   English contemporary dictionary


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