yield-to-maturity - Investment & Finance Definition
The effective interest rate that a bondholder will earn if the bond is held until maturity. Yield-to-maturity takes into account the bond’s purchase price, its current market price, the coupon rate, which is the interest rate that the bond pays, and the amount of time remaining until the bond matures. Yield-to-maturity is the most accurate representation of how much a bond will actually receive if the bond is held until maturity.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.