Plain Vanilla Debt

what does YTM of a bond mean?quiz is based on this which is not mentioned in this module.

1 Answer(s)


YTM or Yield to Maturity is the return the investor will get on a bond if it is help till maturity.
So you have to add up all the future cash flows you will get from the bond (the interest + the principal).

Here is a good article on the topic -