GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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Yield-to-Maturity


Synonyms:annual group insurance coverage, group insurance policy
Acronyms &
abbreviations:
YTM
Filed Under: financial-banking, investments
Tags: finance, financial derivatives, investment, stock market
 

Definition of yield-to-maturity (YTM)

yield-to-maturity (YTM)
1. The internal rate of return on an investment. The YTM generally considers all investment returns and the timing of each return.

Related Terms and Acronyms:

  • average annual yield (AAY)   The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.
  • average yield to maturity (AYTM)
  • internal rate of return (IRR)   That rate at which the present worth of all present and future investment costs equals the present worth of all present and future investment benefits.
  • investment   Something you put your money into in order to make money.
  • investment income   Income that is earned from investments such as interest, dividends, and capital gains.
  • rate of return (ROR, RR)   The profit an investment generates, expressed as equity divided by cash flow.
  • return   Any increase in value or in income you earn on purchase or investment.
  • return on investment (ROI)   The profit an investment generates, expressed as equity divided by cash flow.

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