yield to maturity

American  

noun

1. Finance. the rate of return on a bond expressed as a percentage that accounts for the difference between the interest earned based on current market value and that earned if the bond is held to maturity.

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Example Sentences

For instance, Adani Enterprises' bonds maturing in March 2024 were traded at a yield to maturity of 9.21% on Friday, compared with 9.05% last Wednesday.

From Reuters

While those appear to be poorer terms for investors than the 2.375% coupon on the $977.5 million convertible bond maturing in March 2022, it is superior to the current yield to maturity on that 2022 bond at around 1%, Dancey said.

From Reuters

AA-rated corporates, which in February could issue two-year bonds with a yield to maturity as low as 4.6%, now must choose between bonds paying 6%—if they can find buyers at all given the current scrutiny—or trust loans at 7% or higher.

From The Wall Street Journal

For safety's sake, many experts say investors should focus not on a bond's yield to maturity but on its yield to call, a usually lower figure calculated from the price and yield over the shorter period.

From US News

That's yield to call rather than yield to maturity if the bond sells for a premium, because the earlier call date causes the premium to chew more deeply into overall earnings.

From US News