In the case of a Bond, YTM is defined as the total rate of return that a Bond Holder expects to earn if a Bond is held till maturity. The YTM formula for a single Bond is: Yield to Maturity = [Annual Interest + {(FV-Price)/Maturity}] / [(FV+Price)/2]
What is yield to maturity formula?
In the case of a Bond, YTM is defined as the total rate of return that a Bond Holder expects to earn if a Bond is held till maturity. The YTM formula for a single Bond is: Yield to Maturity = [Annual Interest + {(FV-Price)/Maturity}] / [(FV+Price)/2]