Examples of Yield to Maturity in a sentence
Yield to Maturity- The rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.
If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal (or, if the context shall so require, lesser amount in the case of Discounted Securities) thereof (and premium, if any, thereon) shall, until paid, bear interest from the Redemption Date at a rate per annum equal to the rate borne by the Security (or, in the case of Discounted Securities, the Security’s Yield to Maturity).
Yield to Maturity for Discount Bonds: Recall that discount bond has the same characteristics as the simple loan Borrower Purchase Receives: Price Pd | START | MATURITY DATE | | Lender Receives: Face Value FV Thus the yield to maturity is computed similarly: If N≤1 then i = [FV-Pd] / [Pd * N] = ( [FV-Pd] / Pd )* 365 / #of days to mat.
YLD Yield YTAL Yield to Average Life YTC Yield to Call YTM Yield to Maturity Zero-Coupon Bond Security that makes no interest payments, but is sold at a discount from its face value.
Yield (Internal rate of Return): The compound annual rate of return earned by an investment Yield to Maturity: The rate of return yield by a bond held to maturity when both compound interest payments and the investor’s capital gain or loss on the security are taken into account.