## 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 bondâ€™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.