Series 3: 2.1.1.2. Yield To Maturity

Taken from our Series 3

2.1.1.2. Yield to Maturity

Yield to maturity (YTM) is the anticipated yield of a bond that is bought and held to maturity. It is essentially the rate of return over the life of the bond based on its current value in the market. It differs from current yield because it calculates yield, not just in terms of coupon payments, but also in terms of the present value of the capital gains for a discounted bond.

Present value is the value today of a future stream of payments after accounting for inflation and expe

Since you're reading about Series 3: 2.1.1.2. Yield To Maturity, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 3
Please Enable Javascript
to view this content!