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Yield to maturity

Yield to maturity refers to the rate of interest (discount) that equates future cash flows of a bond, both interest and principal, with the present market price. Yield to maturity is thus the time-adjusted rate of return earned by a bond investor.

Yield to maturity is the interest rate that equates the present value of payments received from a credit market instrument with its value today.

Yield to maturity is the percentage return an owner receives if a bond is held until it matures.

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