Bonds, Interest Rates & Exchange Rates
What is yield to maturity (YTM)?
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Yield to maturity is the average annual return you can expect if you buy a bond at its current price, hold it to maturity, and reinvest the interest received along the way.
It is also defined as the discount rate that makes the present value of all the bond's future cash flows equal to its current purchase price. The bond rate or trading yield quoted in the market usually refers to yield to maturity, which is distinct from the coupon rate used to calculate interest payments.
This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
