Yield to maturity is also referred to as book yield or redemption yield. YTM may fluctuate, while a bond's coupon rate or the interest paid annually on the bond's face value remains fixed.

How to Calculate Yield to Maturity. Yield to maturity is a complex calculation because it involves forward-looking, compounding values. Most investors will use a bond maturity calculator to determine ...

Yield to maturity (YTM) is the annual expected return of a bond if held until maturity, also referred to as book yield. S&P 500 +---% | Stock ...

While the current yield and yield-to-maturity (YTM) formulas may be used to calculate the yield of a bond, each method has a different application—depending on an investor’s specific goals.

For example, let's say that we buy a bond for $980 with five years until maturity. The bond's face value is $1,000 and its coupon rate is 6%, so we get a $60 annual interest payment.

Here’s a lowdown on yield to maturity and how the concept is applied. It helps one understand why, for each person investing in the same security at different points in time, YTM might vary due ...

To sum up, yield to maturity gives investors an idea about an expected annual return from the bond if they stay invested till maturity. The concept of YTM gained additional importance due to the ...

Reviewed by Thomas J. Catalano Fact checked by Michael Rosenston Current Yield vs. Yield to Maturity: An Overview While the current yield and yield-to-maturity (YTM) formulas may be used to ...

Calculating yield to maturity (YTM) Yield to maturity is similar to a discounted cash flow model for valuing stocks. In the case of calculating yield to maturity, all future cash flows can be known.