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Glossary term

Yield to Maturity

Total bond return if held to maturity

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Definition

What is Yield to Maturity?

YTM is the total annualised return you get from a bond if you hold it until maturity, assuming all coupon payments are reinvested at the same rate. It accounts for the price you paid (par, premium, or discount), coupon payments, and face value received at maturity.

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