A bond’s yield is the expected rate of return on a bond. The are three measures of bond yield: nominal yield, current yield and yield to maturity.
The yield-to-maturity (YTM) (aka true yield, effective yield) of a bond held to maturity accounts for the gain or loss that occurs when the par value is repaid, so it is a better measure of the investment return.When a bond is bought at a discount, yield to maturity will always ...
If a bond'syield to maturity(YTM) is higher than its nominal interest rate (coupon rate) then the real value of the bond will be lower than its face (nominal) value and the bond is said to selling at a discount to par, orbelow par. Conversely, if the YTM is lower than its nomina...
Yield to Maturity (YTM).On the other hand, yield to maturity is a dynamic measure of the total return an investor can expect to earn on a bond if they hold it until maturity. YTM takes into account not only the bond’s coupon payments but also any capital gains or losses that occur ...
(or a portion of it) to a Roth). So long as you don’t use some of the proceeds for paying the taxes (i.e., you have enough liquid funds outside of your retirement accounts to pay the taxes) you have parlayed it into an even higher yield as that paper loss is just that — ...