Meaning YIELD TO MATURITY: The percentage rate of return paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity, and market price. It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate
More terms such as Yield to maturity in Dictionary Y.
- Definition Yen Bond:
- Examples Any bond denominated in Japanese yen currency yield to maturity definition.
- Definition Yield Differential/Pickup:
- Examples convertible securities. Graph showing the term structure of interest rates by plotting the yield of all bonds of the same quality with maturities ranging from the shortest to the longest available yield to maturity explain.
- Definition Yield To Warrant Expiration:
- Examples Applies mainly to convertible securities. Effective yield of usable convertible bonds determined by the expiration date of the applicable warrants yield to maturity what is.
- Definition Yankee CD:
- Examples A CD issued in the domestic market, typically New York, by a branch of a foreign bank yield to maturity meaning.
- Definition Yield Curve Option-Pricing Models:
- Examples Models that can incorporate different volatility assumptions along the yield curve, such as the Black-Derman-Toy model. Also called arbitrage-free option-pricing models yield to maturity abbreviation.
