yield to maturity

(redirected from Yields-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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

yield to maturity (YTM)

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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Finally, I describe the hypothetical components of the yields-to-maturity of TIIS and other fixed-income securities.
Figure 2 shows that TIIS yields-to-maturity generally rose during 1997-99, before falling somewhat during 2000.
At the same time, Figure 2 indicates that TIIS yields-to-maturity are volatile, too, albeit in a smaller range.
[4] The remaining sections of this article discuss several institutional and security-design features that may cause TIIS yields-to-maturity to deviate from the hypothetical concept of the ex ante real interest rate.
Most people are accustomed to trading securities in nominal terms and quoting yields-to-maturity as nominal rates.
These very different yields-to-maturity co-exist in the market because they reflect different risks to investors and varying degrees of market liquidity.
Analytical techniques designed to extract estimates of real interest rates from TIIS yields-to-maturity must take into account several important institutional features, however.