yield-to-maturity (YTM)
The annual percentage yield of a security calculated in a specific manner. The yield-to-maturity is the single discount rate that, when applied to all future interest and principal payments, produces a net present value equal to the purchase price of the security. American Banker Glossary
————
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
* * *
YTM YTM
FINANCE written abbreviation for yield to maturity
* * *
Yield To Maturity.
A key consideration when comparing bond investments. It is the annualized rate of return of a bond, namely the interest rate that makes the present value of the a bond's future cash equal to the present price of the bond. It assumes the bond will be held to maturity and that the coupons will be reinvested at the same rate.
* * *
YTM UK US noun [C] FINANCE
► WRITTEN ABBREVIATION for YIELD TO MATURITY(Cf. ↑yield to maturity)
Financial and business terms. 2012.