What is the yield to maturity of a bond?

The yield to maturity (YTM) of a bond is the estimated annual rate of return an investor will receive if they hold the bond until it matures. It takes into account the bond's current market price, its coupon rate, the face value, and the time remaining until maturity. Essentially, the yield to maturity represents the total return an investor can expect to receive from a bond investment if they hold the bond until it matures and receive all promised interest payments and the principal repayment at maturity.