What does Yield To Maturity mean?

Definitions for Yield To Maturity
yield to ma·tu·ri·ty

This dictionary definitions page includes all the possible meanings, example usage and translations of the word Yield To Maturity.

Wiktionary

  1. yield to maturitynoun

    The internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.

  2. yield to maturitynoun

    A calculation of yield on a bond that takes into account the capital gain or loss on a discount bond or capital loss on a premium bond. In the case of a discount bond, the yield-to-maturity, YTM, is higher than the current yield, or the coupon yield. The reverse is true for a premium bond with YTM lower than both current yield and coupon yield.

Wikipedia

  1. Yield to maturity

    The yield to maturity (YTM), book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is an estimate of the total rate of return anticipated to be earned by an investor who buys a bond at a given market price, holds it to maturity, and receives all interest payments and the capital redemption on schedule. It is the (theoretical) internal rate of return (IRR, overall interest rate): the discount rate at which the present value of all future cash flows from the bond (coupons and principal) is equal to the current price of the bond. The YTM is often given in terms of Annual Percentage Rate (A.P.R.), but more often market convention is followed. In a number of major markets (such as gilts) the convention is to quote annualized yields with semi-annual compounding (see compound interest); thus, for example, an annual effective yield of 10.25% would be quoted as 10.00%, because 1.05 × 1.05 = 1.1025 and 2 × 5 = 10.

Wikidata

  1. Yield to maturity

    The Yield to maturity, book yield or redemption yield of a bond or other fixed-interest security, such as gilts, is the internal rate of return earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity, and that all coupon and principal payments will be made on schedule. Yield to maturity is simply the discount rate at which the sum of all future cash flows from the bond is equal to the price of the bond. The YTM is often given in terms of Annual Percentage Rate, but more usually market convention is followed: in a number of major markets the convention is to quote yields semi-annually. The yield is usually quoted without making any allowance for tax paid by the investor on the return, and is then known as "gross redemption yield". It also does not make any allowance for the dealing costs incurred by the purchaser. ⁕If the yield to maturity for a bond is less than the bond's coupon rate, then the market value of the bond is greater than the par value.

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Numerology

  1. Chaldean Numerology

    The numerical value of Yield To Maturity in Chaldean Numerology is: 3

  2. Pythagorean Numerology

    The numerical value of Yield To Maturity in Pythagorean Numerology is: 1


Translations for Yield To Maturity

From our Multilingual Translation Dictionary

  • Rendite bis zur FälligkeitGerman
  • cedere maturitatemLatin

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"Yield To Maturity." Definitions.net. STANDS4 LLC, 2024. Web. 23 Apr. 2024. <https://www.definitions.net/definition/Yield+To+Maturity>.

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