Yield to Maturity (YTM)

charles-schwab-logo

When you invest in a bond, one of the most basic things you need to know is the expected return. That’s where yield to maturity comes in. Also known as the internal rate of return for a bond, yield to maturity is the annual rate of return assuming a bond is held to maturity and all of the interest payments are reinvested at the original rate. It’s the most commonly used way to look at a bond’s expected return.

« Back to Glossary Index
Sites DOT MIISThe Middlebury Institute site network.