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Glossary

Yield to maturity

Category — Analytical Metrics
Yield to maturity (YTM (YTC/YTP)) is the annually compounded rate of return regardless of a bond’s coupon period. This approach is used to calculate yields in Russian, Japanese, Norwegian, Italian, Danish, Swedish, and Spanish markets as well as a number of other countries.

When a bond is at par price and ACI = 0, the YTM value will be marginally higher than the coupon rate (for coupon bonds with a coupon period of less than a year).

YTM is calculated for issues with the cash flow fully determined until the redemption date. YTP/YTC is calculated for issues with the non-executed offer and partially determined cash flow.

More information about yield calculation and example of calculations you can find in Bond Calculator Guide.
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