video

https://www.youtube.com/watch?v=NV0S8pKvje8

What is YTM

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of
its lifetime. Yield to maturity is considered a long-term bond yield, but is expressed as an annual rate.
In other words, it is the internal rate of return of an investment in a bond if the investor holds the
bond until maturity and if all payments are made as scheduled.

BREAKING DOWN 'Yield To Maturity (YTM)'

Calculations of yield to maturity assume that all coupon payments are reinvested at the same rate as
the bonds current yield, and take into account the bonds current market price, par value, coupon
interest rate and term to maturity. YTM is a complex but accurate calculation of a bonds return that
can help investors compare bonds with different maturities and coupons.