




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.
Rate this yield to maturity definition...




Where is the market headed? The answer may surprise you. Find out with the exclusive & Barron's recommended charts of Chart of the Day. 

Popular Terms: in escrow, irrevocable trust, FICO score, labor relations, required rate of return, current ratio, debt service coverage, margin rate, risk management, retained earnings, covered put, 1035 exchange, average price per share, phantom income, 144a, Key Rate Duration, implied volatility, quality assurance, cancelled check, reverse mortgage, stock market close, limit order, inflation, liquidity ratio, diluted share, command economy, option premium, EBITDA, exdividend, minority interest, FTSE, annual return, 401a, LIBOR, balance sheet, whollyowned subsidiary, per diem, exdividend date, Zero Cost Collar, deferred revenue, stock split, 1031 exchange, VIX, real GDP, deferred tax, class C shares, open position, dividends payable, APR


 