Finance & Money · 到期收益率（YTM） · Updated 2026-10-25
What Is Yield to Maturity (YTM)?
Definition
YTM is the discount rate that makes the present value of all future coupons plus principal equal the bond's current price. It differs from the coupon rate: the coupon decides how much interest is paid, while YTM reflects your true annualized return at today's price. Discount bonds (price below par) have YTM above coupon; premium bonds below it. Bond prices move inversely to market rates — when rates rise, old low-coupon bonds fall in price until their YTM matches new issues.
Formula
P = Σ C/(1+y)^t + F/(1+y)^n — solve for y to get YTM
Worked Example
A bond with 100 face value, 3% coupon, 5 years left, priced at 95: YTM≈4.0% — above the coupon, because you recover 100 at maturity, earning 5 in price gain plus 3 in yearly coupons.
Common Misconception
Believing bonds "guarantee principal and interest" — true only if bought at issue and held to maturity; secondary-market prices swing with rates, and selling early in a rising-rate period turns paper losses into real ones. YTM also assumes coupons are reinvested at the same rate, so realized returns run slightly lower when rates fall.
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