Yield to maturity
The expected annual rate of return on a bond from the day it is purchased to the day it matures. Yield to maturity considers the bond’s current market price, par value, coupon interest rate and the length of time before it matures. This is the most widely quoted yield for bonds and it allows investors to compare returns with those from other securities. The yield to maturity will be more than the current yield if the bond is selling at a discount and less than the current yield if it selling at a premium.
This definition is for general information purposes only