What is yield to maturity?

Yield to Maturity (YTM) is the total annualised return anticipated on a bond if held until maturity and assuming all coupon payments will be reinvested at this rate. It includes the interest payments you’ll receive and any difference in the bond's current price versus its maturity price (which is the same at the point it is issued). It is expressed as an annual percentage rate. We always indicate the date on which the YTM calculation is based until.