What is the full form of "YTM"?

A. Yield To Money

B. Yield To Maturity

C. Marketing To Yield

D. Mutual Trade Yielding

Answer: Option B

Solution(By Examveda Team)

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate.