top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration

What is the meaning of the term Yield to Maturity?

+1 vote
7 views
What is the meaning of the term Yield to Maturity?
posted Jul 10, 2017 by Ananya Saha

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

+1 vote

t is also known as redemption yield. As the name suggests, if an investment is held till its maturity date, the rate of return that it will generate will be Yield to Maturity.

Calculation of YTM is a complex process which takes into account the following key factors:

  1. Current Market Price
  2. Par Value
  3. Coupon Interest Rate
  4. Time to maturity

Despite its complexity the following formula can be used to find out its approximate value:

answer Jul 11, 2017 by Shubham Rajput
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#280, 3rd floor, 5th Main
6th Sector, HSR Layout
Bangalore-560102
Karnataka INDIA.
QUERY HOME
...