Yield to Maturity

This Issue in United States

Concept of Yield to Maturity in Futures Trading

In this context of financial law, the following is a definition of Yield to Maturity: The rate of return an investor receives if a fixed income security is held to maturity.

Yield to Maturity

Concept of Yield to Maturity in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The amount of interest on an annual compound basis, which a bond would pay if held until redemption or the maturity date. Also, the interest rate that, if used to discount all cash flows, would yield the current price.

Resources

See Also

• Derivatives Contract