Yield To Maturity (ytm)

Definition of "Yield to maturity (ytm)"

Tracy Sutton real estate agent

Written by

Tracy Suttonelite badge icon

Fathom Realty Llc

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Same as term Debit Insurance: life insurance on which a premium is collected on a weekly, bi-weekly, or monthly basis, usually at the home of a policyholder. The face value of the policy is ...

Eligible rollover distribution that is paid directly from an employee's employee benefit insurance plan to the employee's individual retirement account (IRA) or to another plan maintained ...

Membership organization, based in Chicago, Illinois, consisting principally of property and casualty insurance companies. Its objectives are to influence the public and the legislators on ...

Amount paid to an insurer. Determination of the actual cost (not the price paid) of a life insurance policy has been widely discussed for many years in life insurance and consumer circles. ...

Proof of death of the insured form filed with the insurance company establishing the rights of the beneficiary to the death benefit. ...

Mortality table whose statistics have been adjusted to show expected mortality experience. ...

Decision by a court of law. ...

Coverage for the contents of a renter's home or apartment and for liability. Tenant policies are similar to homeowners insurance, except that they do not cover the structure. They do, ...

Index that traces the construction of new single-family homes, townhouses, and multifamily apartment buildings. These statistics are published monthly by the United States Department of ...

Popular Insurance Questions