Definition:
Yield to maturity is a term associated with bonds that refers to the rate of return on a bond if that bond is held to its maturity date. Bonds have maturity dates of one year or longer. The variables that you use to calculate yield to maturity are the coupon rate on the bond, time to maturity, par value of the bond, and the current market price of the bond.
Also Known As: bond yield
Examples:
The yield to maturity on XYZ Corporation's bonds is 11%.
