yield to maturity
(YTM)
Noun
The average annual internal rate of return on a bond’s cash flows that will be earned if it is bought now and held to maturity, which is the implied market discount rate at which the sum of all its expected future cash flows (coupons and principal) equal to the bond’s current market price.
Synonym(s):
- approximate YTM; approximate promised yield; approximate yield to maturity; promised YTM; promised yield to maturity; redemption yield.
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