Why does Yield to Maturity matter?

Standard way to compare bonds with different prices and coupons.

What is a common mistake with Yield to Maturity?

Throwing around “Yield to Maturity” without the simple meaning.

Lesson60 seconds

YTM is the discount rate that equates a bond's price to its future coupons and principal.

The if you hold a until it matures, assuming coupons are paid.

Hearing this as Like I'm 5™

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YTM is the discount rate that equates a 's price to its future coupons and .

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Tap a persona to hear the same idea in a totally different voice.

Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.

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