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Institute of Investing

Yield to Maturity (YTM)

Approximate YTM %

Methodology

Yield to Maturity is the total return anticipated on a bond if the bond is held until it matures. It is considered a long-term bond yield but is expressed as an annual rate.

Because exact YTM requires solving for the root of a polynomial equation, this tool uses the standard approximation formula favored for rapid estimation.