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Home > QFINANCE Dictionary > Definition of yield to maturity

Definition of

yield to maturity

Stockholding & Investments

investor's total return if security held to maturity the total return to an investor if a fixed interest security is held to maturity, in other words, the aggregate of gross interest received and the capital gain or loss at redemption, annualized.

Related definitions of "yield to maturity"

Recommended Further Reading (Term count)
  • Bond Yield
    The annual return on this certificate (the rate of interest) expressed as a percentage of the current market price of the bond.
  • How to Set the Hurdle Rate for Capital Investments
    by Jon Tucker
    Chief financial officers are charged with the task of maximizing shareholder wealth. They do this by pursuing two key goals: Maximizing the stream of future cash flows, and minimizing the company’s cost of capital. Cognizant of the separation theorem, we tend to separate one goal from the other. However, both are of strategic importance—a healthy stream of cash flows can actually destroy value (and hence reduce shareholder wealth) if the company...
  • Understanding the Weighted Average Cost of Capital (WACC)
    This checklist explains the weighted average cost of capital.
  • Capital Budgeting: The Dominance of Net Present Value
    by Harold Bierman, Jr
    A capital budgeting decision is characterized by costs and benefits that are spread out over several time periods. This leads to a requirement that the time value of money be considered in order to evaluate the alternatives correctly. Although to make decisions we must consider risks as well as time value, I restrict the discussion to situations in which the costs and benefits are known with certainty. There are sufficient difficulties in just...

Definitions of ’yield to maturity’ and meaning of ’yield to maturity’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’yield to maturity’ and other financial terms with our online QFINANCE Financial Dictionary.

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