Yield to maturity
Yield to maturity is the discount rate that equates a bond's price with scheduled cash flows if stated assumptions hold.
Plain-language meaning
Yield to maturity is the discount rate that equates a bond's price with scheduled cash flows if stated assumptions hold.
Why it is useful
Yield to maturity is useful as descriptive evidence when it is compared on the same definition, source, period, unit and exact listing. It is one input to research, not a verdict.
Where it appears in XMarketRadar
Look for Yield to maturity in the Bond scanner, bond factsheets, comparison fields and yield/risk context.
How it is calculated or sourced
Solve for the discount rate that makes the present value of scheduled coupon and principal cash flows equal the observed bond price, subject to the stated assumptions.
Inputs, period and unit
Read the disclosed inputs or source, observation period, bar interval, unit, native currency and scale. A value without its source and as-of context is incomplete; unlike units must not be combined.
Worked example
Illustrative only: A ₹1,000 face-value bond priced at ₹950 with remaining coupons can have YTM above its coupon rate, but the exact result needs every dated cash flow and convention.
What high and low mean
A higher or lower Yield to maturity value is descriptive, not automatically good or bad. Meaning depends on the instrument, comparison period, method and related evidence.
Positive, negative and genuine zero
Positive and negative Yield to maturity values retain the definition shown here. A genuine reported or computed zero is displayed as 0 and is not the same as missing evidence.
Limitations and common mistakes
These measures assume specified cash flows and conventions. Calls, defaults, variable coupons, taxes, liquidity and large yield moves can invalidate simplified interpretation.
Market-specific differences
Day-count, coupon frequency, settlement, tax, price quotation and rating scales vary across all supported markets. Use the contract and venue conventions shown with the bond.
Suggested next steps
Open the related Fixed income terms below, then follow the matching Help Centre task guide and inspect Yield to maturity on an exact exchange listing. Confirm source, as-of time, units and unavailable reason before using it in research.
Educational information only; not investment advice or an order service.
This Yield to maturity tutorial is educational and descriptive. It is not investment advice, a price prediction, a recommendation, or an instruction to buy, sell, rebalance or place an order.
Also known as: ytm