Yield To Maturity
Yield to maturity (YTM) is the total expected return on a bond if held to its maturity. It accounts for the current price, remaining coupon payments, and the redemption of principal at maturity, and is typically expressed as an annual rate.
Example: Example: A 10-year bond with a 3% coupon is priced at 95 and matures at 100; the yield to maturity reflects the annualized return assuming the bond is held to maturity and coupons are reinvested at the same rate.
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