The yield to maturity is the total expected return on a bond if it is held until the end of its maturity date. It takes into account the bond's current market price, coupon payments, and the time remaining until maturity.
Ex- Suppose a bond has a face value of 1,000, a current market price of 950, and pays annual coupons of 50. The YTM is the rate that, when applied to the bond's future cash flows, gives a present value of 950.
The bond can be purchased at a discounted rate, which will increase your yield above the coupon rate
Or it can be purchased at a premium.
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