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 buys and holds 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. Bloomberg Financial Dictionary
————
yield to maturity ( YTM)
Yield to maturity or YTM is the rate of return anticipated on a bond if it is held until the maturity date. London Stock Exchange Glossary
* * *
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.
* * *
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%.
Financial and business terms. 2012.