Yield to Maturity (YTM)
InvestingThe total return anticipated on a bond if held until it matures, accounting for coupon payments and price difference.
Example
Example: Consider an investor building a $100,000 portfolio. Yield to Maturity (YTM) — the total return anticipated on a bond if held until it matures, accounting for coupon — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.