Yield to maturity

Yield to maturity
The percentage rate of return paid on a bond, note or other fixed income security if you buy and hold 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. The New York Times Financial Glossary

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yield to maturity ˌyield to maˈturity also maˈturity ˌyield noun yields to maturity PLURALFORM [countable]
FINANCE the yield of a bond calculated from the time when it was bought, taking into account the price paid for it, interest payments on it, and its value at maturity (= when it becomes ready to be paid); = REDEMPTION YIELD; YIELD TO REDEMPTION:

• A disadvantage of yield to maturity is that investors do not typically hold bonds to maturity.

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yield to maturity UK US noun [C] (plural yields to maturity) (WRITTEN ABBREVIATION YTM, also yield to redemption)
FINANCE the total yield (= profit) of a bond, etc. when the bond is kept until the maturity date (= the original date on which it was planned to pay it back): »

The bond is due in 2033 with a yield to maturity of 7.2%.

Compare YIELD TO CALL(Cf. ↑yield to call)

Financial and business terms. 2012.

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Look at other dictionaries:

  • yield-to-maturity — ( YTM) The annual percentage yield of a security calculated in a specific manner. The yield to maturity is the single discount rate that, when applied to all future interest and principal payments, produces a net present value equal to the… …   Financial and business terms

  • 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 — The Yield to maturity (YTM) or redemption yield is the yield promised to the bondholder on the assumption that the bond or other fixed interest security such as gilts will be held to maturity, that all coupon and principal payments will be made… …   Wikipedia

  • yield to maturity — The rate of return an investor receives if a fixed income security is held to maturity. Chicago Board of Trade glossary The percentage rate of return paid on a bond, note, or other fixed income security ( fixed income securities) if the investor… …   Financial and business terms

  • yield to maturity — noun a) The internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest. b) 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… …   Wiktionary

  • 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

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