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Yield to Maturity (YTM)

IRR of a bond's cash flows assuming held to maturity

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Yield to Maturity (YTM)

IRR of a bond's cash flows assuming held to maturity

Definition

YTM is the internal rate of return of a bond's cash flows if held to maturity. It considers coupon payments and principal repayment. Formula requires iteration or approximation for precise calculation.

Related Topics

#bond valuation #internal rate of return #required yield #discount rate

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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