Yield To Maturity Definition

This includes all interest and coupon payments as well as any premium or discount adjustments.

Yield to maturity definition. Yield to maturity ytm otherwise referred to as redemption or book yield is the speculative rate of return or interest rate of a fixed rate security such as a bond. It is also known as redemption yield. An investor will determine a required yield the return on a bond. Yield to maturity correspond au calcul du taux de rendement que rapporte à l échéance un investissement effectué dans un produit de taux principalement les obligations.

Zinssatz mit dem zukünftige cashflows eines zinsinstruments diskontiert werden damit die summe der diskontierten cashflows barwerte dem dirty price entspricht. Current market price 2. Yield to maturity is the total earnings or return an investor anticipates earning from a bond assuming they keep it until it matures. The ytm is also referred to as book yield or internal rate of return.

Ytm takes into account the coupon rate and the current interest rate in relation to the price the purchase or discount price in relation to the par value and the years remaining until the bond matures. The yield to maturity ytm book yield or redemption yield of a bond or other fixed interest security such as gilts is the theoretical internal rate of return irr overall interest rate earned by an investor who buys the bond today at the market price assuming that the bond is held until maturity and that all coupon and principal payments are made on schedule. Yield to maturity is the most precise measure of a bond s anticipated return and determines its current market price. Calculation of ytm is a complex process which takes into account the following key factors.

Yield to maturity implique que l investisseur qui achète une obligation d aujourd hui au prix du marché détiendra cette. Uses of yield to maturity ytm yield to maturity can be quite useful for estimating whether buying a bond is a good investment. Die yield to maturity ist die verzinsung die der investor erhält wenn er den bond bis zur endfälligkeit hält und alle. Yield to maturity definition is the total rate of return to an owner holding a bond to maturity expressed as a percentage of cost.

Yield to maturity ytm refers to the total return someone earns when he or she purchases a bond and holds it to the maturity date. Lexikon online ᐅyield to maturity ytm. Yield to maturity ytm. The ytm is based on the belief or understanding that an investor purchases the security at the current market price and holds it until the security has matured.