Yield To Maturity

Business, Legal & Accounting Glossary

Definition: Yield To Maturity


Quick Summary of Yield To Maturity


The yield that would be achieved on a bond if it was held until maturity.



Full Definition of Yield To Maturity


Yield to maturity, the most widely quoted yield for bonds, measures the total overall return. A bond’s yield to maturity is the overall rate of return that the bond earns if purchased at today’s market price and held until its maturity date. Yield to maturity includes both the yearly interest the investor earns, and the difference between what the investor paid for the bond and the amount the investor receives at the bond’s maturity. Unless otherwise noted, yields are quoted for bonds on a yield to maturity basis. A bond’s yield to maturity can be calculated with a specialized bond calculator. Yield to maturity is often referred to as the yield or basis, so a 5.00% yield to maturity means the same as a 5.00% yield or a 5.00% basis. In addition to its yield to maturity, a bond’s yield can also be expressed in terms of its nominal yield, current yield, and yield to call.


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Yield To Maturity. PayrollHeaven.com. Retrieved July 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/yield-to-maturity/

Definition Sources


Definitions for Yield To Maturity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 1 Views.