yield to maturity

USAGE SUMMARY

"yield to maturity" is a correct and usable term in written English.
It is most often used in context with investing and finance. For example: "The yield to maturity on the bond was 2.3%."

✓ Grammatically correct

News & Media

Academia

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

We bought GMAC's at a 55% yield to maturity.

Forbes

Cournoyer recently made an exception and bought some Mexican sovereigns maturing in 2026, with a 10.1% yield to maturity.

Forbes

So, r is also called yield to maturity.

Yale University

Mr. Whitman bought the bonds with a yield to maturity of 25percentt.

The New York Times

The fund's yield to maturity was 5.92percentt, versus 4.32percentt for the index.

The New York Times

The yield to maturity is higher on notes, which have lower liquidity.

Stanford University

The yield to maturity is 5.99percentt, versus 2.62percentt for United States Treasury securities of comparable maturity.

The New York Times

The convertibles, with a 3.75percentt coupon due July 2006, have a yield to maturity of about 8percentt.

The New York Times

Yield to maturity?

Forbes

Yield to maturity: 10%.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

1 human-written examples

Its bonds trade now at 12% yield to maturity--junk level last summer.

Forbes

Expert writing Tips

Best practice

When discussing bonds, clearly specify if you are referring to "yield to maturity" (YTM) or current yield to avoid confusion, as they represent different calculations of return.

Common error

Avoid assuming the "yield to maturity" is the same as the coupon rate. The coupon rate is the stated interest rate, while "yield to maturity" factors in the bond's current market price and time to maturity.

Linguistic Context

The phrase "yield to maturity" functions as a noun phrase within the context of finance and investment. It quantifies the total return an investor can anticipate from a bond if held until maturity. Ludwig AI confirms its role in financial discourse.

Expression frequency: Very common

Frequent in

News & Media

79%

Academia

11%

Wiki

6%

Less common in

Formal & Business

0%

Science

0%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "yield to maturity" (YTM) is a fundamental concept in finance, representing the total return an investor can expect from a bond held until maturity. As Ludwig AI confirms, it's grammatically sound and widely used in financial contexts. Predominantly found in News & Media and Academic sources, it serves to provide a standardized metric for comparing bond returns. Distinguishing YTM from the coupon rate is crucial. For related concepts, consider "bond's total return" or "effective yield on a bond". Be mindful of potential risks associated with higher YTMs, as they might indicate lower credit ratings.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

YTM

This is the abbreviation of "yield to maturity".

Bond's total return

This emphasizes the overall return an investor receives from a bond, including interest and capital gains.

Effective yield on a bond

This highlights the actual return an investor earns after considering all factors, like compounding.

Overall rate of return for a bond

This stresses the comprehensive nature of the return, covering all income and price changes.

Bond's investment yield

This focuses on the yield from the perspective of an investment.

Bond's annualized return

This indicates the return an investor can expect to receive each year.

Total interest earnings on a bond

This specifies that interest payments form the return.

Bond's redemption yield

This refers to the yield at the time the bond is redeemed.

Full-term bond yield

This emphasizes the yield obtained if the bond is held for its entire term.

Bond's prospective return

This refers to the anticipated return from holding a bond to maturity.

FAQs

How is "yield to maturity" calculated?

The "yield to maturity" is calculated by considering the bond's current market price, par value, coupon interest rate, and time to maturity. It represents the total return an investor can expect if the bond is held until it matures.

What does "yield to maturity" tell you about a bond?

The "yield to maturity" provides an estimate of the total return an investor can expect from a bond if held until maturity. It's a more comprehensive measure than the current yield, as it factors in any capital gain or loss if the bond is purchased at a discount or premium.

What's the difference between "yield to maturity" and current yield?

Current yield is the annual interest payment divided by the bond's current market price. The "yield to maturity" is a more complex calculation that includes the current yield and any capital gain or loss an investor would realize by holding the bond until it matures.

Is a higher "yield to maturity" always better?

Not necessarily. A higher "yield to maturity" might indicate a higher risk. Bonds with higher YTMs are often issued by companies with lower credit ratings or during times of economic uncertainty. Always consider the risk associated with the bond, in addition to the YTM.