Yield to Maturity
Yield to Maturity is the amount of interest you will earn if you keep a debt instrument the full term.
John bought a 10 year $10,000 bond that pays 5% interest. If he keeps the bond the full 10 years, his yield to maturity will be 5%. If John sells the bond before the 10 years are up, he will make a profit or loss on the sale of the bond which will affect his yield.
Sign Up to Learn More!
Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!