Yield to Maturity (YTM) is the total annualized return you'll receive if you buy a bond today and hold it until maturity, factoring in coupon payments, the current market price, and the return of face value. YTM is the standard comparison metric for bonds. A bond trading at a discount has YTM higher than its coupon rate; a bond trading at a premium has YTM lower than coupon. For example, a 5% coupon bond at $950 with 10 years to maturity yields about 5.62% YTM. YTM assumes you reinvest coupons at the same rate — a real-world simplification.
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Yield to Maturity
August 22, 2026 · Aditya Gupta
Investing
Related terms
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