Yield-to-maturity meaning

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.
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(finance) The internal rate of return on a bond held to maturity, assuming scheduled payment of principal and interest.
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(law) A calculation of yield on a bond that takes into account the capital gain or loss on a discount bond or capital loss on a premium bond. In the case of a discount bond, the yield-to-maturity, YTM, is higher than the current yield, or the coupon yield. The reverse is true for a premium bond with YTM lower than both current yield and coupon yield.
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