Bonds & Fixed Income
50 terms · page 3 of 3
Yield to Maturity
Bonds & Fixed Income
%
The total annualised return from holding a bond to maturity, accounting for coupons, the purchase price and the redemption amount.
Approximate YTM = [Annual Coupon + (Face Value - Price) / Years to Maturity] / [(Face Value + Price) / 2]
Zero-Coupon Bond
Bonds & Fixed Income
₹
A bond paying no periodic interest, issued at a discount and redeemed at face value.
Price = Face Value / (1 + Yield) raised to the number of years to maturity