Yield to Maturity (YTM)

The total annualized return an investor can expect if a bond is held until it matures, accounting for the current market price, coupon payments, and the time remaining until maturity. YTM is considered the most comprehensive measure of a bond's return because it captures both income and any capital gain or loss from buying above or below par. When bond traders quote yields, they are almost always referring to yield to maturity.