Glossary
Yield to Maturity (YTM)
The total return if you hold a bond to maturity
Yield to maturity (YTM) is the true annual return you'd earn from buying a bond now and holding it to maturity, reflecting all the interest and principal you'll receive. Unlike looking at the coupon rate alone, it also accounts for whether today's price is below or above face value. It's the key measure for comparing bonds' real attractiveness.