What is the meaning of Yield to Maturity?

Subtopics: YTM 

Yield to Maturity is the rate of return which is measured by the current expected income stream relative to the prevailing market price assuming that the asset is held until maturity. If the instrument is trading at a discount, then the yield to maturity will be greater than the coupon rate. If the instrument is trading at a premium, then the yield to maturity will be less than the coupon rate.

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APABarry Goldsmith. (2010). yield to maturity. Retrieved September 20, 2026, from http://smartdefine.org/yield_to_maturity/definitions/1166713
ChicagoBarry Goldsmith. 2010. "yield to maturity" http://smartdefine.org/yield_to_maturity/definitions/1166713 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, yield to maturity, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/yield_to_maturity/definitions/1166713>.
MLABarry Goldsmith. "yield to maturity" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/yield_to_maturity/definitions/1166713>