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Meaning / Definition of

Ytm

Categories: Finance,

The percentage rate of return on a bond if it is held to maturity. Calculation of YTM is:YTM = ((Coupon + net change in Price) / Years to Maturity) / ((Purchase Price + par value) / 2 )OrYTM = I + [(FV – CV) / N] / (FV + CV) / 2whereI = interest paid annually in dollarsFV = face valueCV = current value (price)N = number of years until maturity

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Categories: Insurance,

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