Economics Risk And Return Questions
The yield to maturity (YTM) is the total return anticipated on a bond if it is held until its maturity date. It represents the annualized rate of return that an investor can expect to earn on a bond if all interest payments are reinvested at the same rate until maturity. YTM takes into account the bond's current market price, its face value, the coupon rate, and the time remaining until maturity.