yield to maturity

(redirected from Yield-to-Maturity)

Yield to maturity

The percentage rate of return paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity, and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate.

Yield to Maturity

The rate of return on a bond if it is held until maturity. This is expressed as an annual rate; the calculation of the YTM includes the coupon rate (if any), length of the bond, market value, and face value. Bond quotes are made in terms of the YTM, but an individual investor's yield may be different if he/she does not hold the bond, or if the bond is called before maturity.

yield to maturity (YTM)

The annual return on a bond held to maturity when interest payments and price appreciation (if priced below par) or depreciation (if priced above par) are considered. When a bond sells at par, the yield to maturity is the same as the current yield because price appreciation or depreciation is zero if the security is held to maturity. Bond quotations are generally on a yield-to-maturity basis, although an investor who sells a bond before maturity may earn a yield different from the yield to maturity as calculated at the time the security was purchased. See also internal rate of return, maturity basis.

Yield to maturity (YTM).

Yield to maturity is the most precise measure of a bond's anticipated return and determines its current market price.

YTM takes into account the coupon rate and the current interest rate in relation to the price, the purchase or discount price in relation to the par value, and the years remaining until the bond matures.

yield to maturity (YTM)

The internal rate of return of an investment, taking into consideration all incomes and expenses and their timing.

References in periodicals archive ?
The price to purchasers was 99.456% of the principal amount of the Notes representing a yield-to-maturity of 5.625%.
The convertible loan will accrue interest at the rate of 4 percent per annum (payable semi-annually) and will have a yield-to-maturity of 5.625 percent per annum calculated semi-annually.
5-year USD 300 million emission was priced at 6% yield-to-maturity.
Fortis also plans to raise $100 million through foreign currency convertible bonds of five-year maturity at Rs.167 a share with a 5.54 percent yield-to-maturity per annum.
The zero-coupon LTNCDs will carry a yield-to-maturity of 6.75 percent.
In evaluating fixed-income investments such as corporate or government bonds, the investor is faced with a variety of measures of investment return or yield: current yield; yield-to-maturity; yield-to-call; after-tax yield; taxable equivalent yield; and realized compound yield.
It is interesting to note that the estimated ex ante 10-year real interest rate does not track the TIIS yield-to-maturity very closely, as Figure 1 indicates.
The price to the purchasers was 99.615%% of the principal amount of the Senior Notes representing a yield-to-maturity of 3.685%.
The company has priced the offering to investors at 99.577% of the principal amount of the notes representing a yield-to-maturity of 4.070% for net proceeds after expenses of approximately USD592.0m.
The company state that the price to investors was 99.126% of the principal amount of the notes representing a yield-to-maturity of 4.107%.
The notes were priced at 99.185% of their principal amount representing a yield-to-maturity of 3.497%, the company said.
According to the company, the offering was priced at 99.185% of the principal amount of the notes representing a yield-to-maturity of 3.497%.