What Is Yield to Maturity (YTM)?

The yield to maturity (YTM) of a bond is the total return expected if the bond is kept to maturity. Long-term bond yields are referred to as yield to maturity, although they are represented as an annual rate. In other words, the internal rate of return (IRR) of a bond investment assuming the investor keeps the bond to maturity, making all scheduled payments and reinvesting at the same rate.