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Yield to maturity  (YTM) - Financial definition

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Translations:      FR  rendement à échéance (n.m.)     ES  rendimiento al vencimiento (n.m.)     DE  Rendite bis zur Fälligkeit (n.f.) 

Concise definition of the term yield to maturity

Yield to maturity is the annual rate of return anticipated for a bond if it is held until its maturity.

Comprehensive definition of the term yield to maturity

The concept of yield to maturity is based on the hypothesis that all coupon payments before maturity can be reinvested at that exact same rate, which usually is not the case.

Additional information related to this definition

Definitions of related terms

Bond  •  Coupon

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