yield to maturity


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Related to yield to maturity: Yield to call

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 ?
Such aggregate issuances of equity securities satisfy the condition set forth in the Supplemental Indenture; accordingly, there will be no adjustment in the yield to maturity of the Company's 2004 Notes.
Key fixed income mathematical concepts, such as yield to maturity, duration and convexity, are also covered, along with passive and active bond trading strategies and credit risk associated with fixed income instruments.
As previously announced, the total consideration to be paid for validly tendered and accepted Notes will be the present value of future cash flows up to and including November 1, 2007, based on the assumption that the Notes will be redeemed at a price of $1,045 per $1,000 principal amount of Notes on such date, discounted at a rate equal to 50 basis points over the yield to maturity on the 4.
The purchase price to be paid in the Offer for each $1,000 principal amount of Notes tendered and accepted for payment pursuant to the Offer will be determined by reference to a cash amount (the "Total Consideration") calculated in a manner intended to result in a yield to maturity equal to the yield to maturity of the 3.
825 percent debentures, respectively, calculated on an equivalent yield to maturity basis.
As described in more detail in the Offer to Purchase, dated November 8, 2005, the purchase price to be paid in the Offer for each $1,000 principal amount of Securities tendered and accepted for payment pursuant to the Offer will be determined by reference to a cash amount (the "Total Consideration") calculated in a manner intended to result in a yield to maturity equal to the yield to maturity of the 3.
The purchase price for the notes will be a "fixed spread" price, calculated using a yield equal to a fixed spread of 50 basis points plus the yield to maturity of the 3.
The rating of the notes addresses the likelihood that the payment amounts to holders of the notes will be sufficient to produce a yield to maturity on the notes of not less than the notes' interest rate, if held to the stated maturity, but does not address the timing of such payments.
With this course you learn how to set up the cash flows for a bond, which will enable you to calculate the clean price, the dirty price and yield to maturity.
796% of the aggregate principal amount, with an effective yield to maturity of 6.