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Glossary

Yield to Maturity (YTM)

The total annual return on a bond if held until it matures.

Yield to maturity is the single rate that accounts for a bond's coupon payments plus any gain or loss between its price and face value, assuming you hold it to maturity.

When a bond trades below face value its YTM is above the coupon rate; above face value, YTM is lower. It's the standard way to compare bonds of different prices and maturities.

Put it into practiceTry the Yield to Maturity (YTM) CalculatorRun your own numbers in seconds — free and private.

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