Economics Bonds Questions
Bond yield to maturity refers to the total return an investor can expect to receive if they hold a bond until its maturity date. It takes into account the bond's current market price, its coupon rate, and the time remaining until maturity. The yield to maturity represents the average annual return an investor will earn from the bond, including both the periodic interest payments (coupon payments) and any capital gains or losses upon maturity. It is an important measure for investors to assess the profitability and attractiveness of a bond investment.