The yield of a bond to maturity takes into account the price discount from or premium over the face amount. It is greater than the current yield when the bond is selling at a discount and less than the current yield when the bond is selling at a premium. ZERO-COUPON BONDS: A bond sold at a substantial discount which does not pay periodic interest.
The yield if the bond is held to maturity. This is the most frequently used measure of value for a bond. Generally, the calculation is a function of coupon payments, dirty price, and the method for discounting coupons and the redemption value. However, the exact functional form is determined by market or dealer conventions
The rate of return you receive if you hold a bond to maturity AND reinvest all of the interest payments at the YTM rate. It is calculated by taking into account the total amount of interest you will receive over time, your purchase price (the amount of capital you invested), the face amount (or amount you will be paid when the issuer redeems the bond), the time between interest payments, and the time remaining until the bond matures.
the annualized rate of return if a long-term, interest bearing security held to its maturity. The calculation takes into account the premium or discount paid on the bondâ€(tm)s initial purchase.
Rate of return on a debt security held to maturity, including appreciation and interest.
Used to determine the total rate of return an investor will receive if a bond is held to its maturity. It takes into account purchase price, time to maturity, current market price, and the coupon yield.
Return available taking into account the interest rate, length of time to maturity, and price paid. It is assumed that the coupon reinvestment rate for the life of the bonds will be the same as the yield-to-maturity.