Yield To Maturity (ytm)
Sum total of the annual effective rate of return earned by an owner of a bond if that bond is held until its maturity date. This effective return includes the current income generated by the bond as well as any difference in the face value of the bond and the bond's purchase price. The relationship of YTM and the bond's coupon rate is as follows: if the purchase price of the bond is greater than the face value of the bond (purchase made at a premium), the YTM is lower than the coupon rate (rate printed on bond certificate); if the purchase price of the bond is less than the face value of the bond (purchase made at a discount), the YTM is higher than the coupon rate; and if the purchase price of the bond is equal to the face value of the bond, the YTM is equal to the coupon rate.
Popular Insurance Terms
Same as term Cargo Insurance: shipper's policies covering one cargo exposure or all cargo exposures by sea on all risks basis. Exclusions include war, nuclear disaster, wear and tear, ...
Policy under which the insurer will pay the actual cash value of the property at the time the property was damaged or destroyed provided the loss falls within the limitations of the policy. ...
Agreement under which an annuitant receives a predetermined monthly income benefit for life upon the death of the insured. Should the annuitant predecease the insured, the contract is ...
Voluntary market conduct compliance organization whose purpose is to protect the public interest and to enhance the insurance buyer's perception of the life insurance instrument. The member ...
Rating method for commercial fire insurance according to a predetermined schedule. Published by A. F. Dean in 1902, this method was the first comprehensive qualitative analysis procedure to ...
Federal tax imposed on the estate of a decedent according to the value of that estate. The first step in the computation of the federal estate tax owed is to determine the value of the ...
Formal process of setting aside funds on a mathematical basis to provide deferred income benefits. ...
Time, in health insurance, from the first day of a disability, illness, or accident during which no benefits are payable. The longer the probationary period, the lower the premium. ...
Voluntary state insurance programs that aid small businesses in acquiring insurance coverages when there are impediments to obtaining the coverage. ...
Have a question or comment?
We're here to help.