Yield to Maturity (YTM) is the total expected return from a bond when it is held until maturity that includes all interest, coupon payments, and premium or discount adjustments. A YTM is the annualised return on a debt instrument based on the total payments received from the date of initial purchase until the maturation date. In comparison, the Current Yield on a bond is the annual coupon income divided by the current price of the bond security.

Related Definitions in the Project: The Commercial Definitions