Yield to maturity意思

"Yield to maturity" (YTM) is a measure of the total return expected on a bond if it is held until maturity. It includes both the interest payments (coupon payments) and the capital gain or loss that an investor would receive if the bond is held until its maturity date and then sold for its face value.

The YTM is the discount rate that makes the present value of a bond's future cash flows equal to the bond's current price. These cash flows include the coupon payments and the face value payment at maturity.

To calculate the YTM, you need to discount the sum of the future cash flows (coupons and face value) back to the present using the current bond price. The formula for calculating YTM is somewhat complex and typically requires the use of financial calculators or spreadsheet software.

YTM is an important metric for bond investors because it provides a measure of the bond's overall return. It takes into account the time value of money and the reinvestment of coupon payments. However, it assumes that the bond will be held until maturity and that coupons can be reinvested at the same rate as the YTM.

It's important to note that YTM can change over time as the bond's price fluctuates in the market. If a bond's price increases, its YTM will decrease, and if the price decreases, the YTM will increase. This is because the YTM is directly related to the bond's price.