Yield to Maturity

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Definition

Yield to maturity is the internal rate of return earned when buying the bond today at the market price, assuming the buyer holds the bond to maturity, and all the coupon and principal payments are made. It is expressed as an annualized figure.

Formula

In YCharts, for bond funds, Yield to maturity is calculated by weighting the remaining coupon and principal payments relative to the size of the portfolio.

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