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What Is Yield to Maturity (YTM)?

By Adam Levy – Updated Aug 17, 2025 at 8:19PM

Key Points

  • YTM measures the total annual return on a bond if held till its maturity date.
  • Calculation of YTM includes present value, market price, maturity date, and compounding periods.
  • Limitations of YTM include reinvestment risks and impacts of interest rate changes.

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