yieldtomaturitya
Yield to maturity, often abbreviated as YTM, is a crucial metric used in fixed-income investing to estimate the total return an investor can expect from a bond if it is held until its maturity date. It represents the annualized rate of return that equates the present value of all future cash flows from a bond, including coupon payments and the principal repayment, to its current market price.
YTM is a forward-looking measure and assumes that all coupon payments are reinvested at the same rate
The calculation of YTM is typically done through an iterative process or by using financial calculators and
When a bond is trading at a discount (below its par value), its YTM will be higher