Yield to maturity

Roles that need it

• Credit Research Analyst
• Portfolio Manager Assistant
• Trading Analyst
• Debt Capital Markets Analyst
• Treasury Analyst

Skills it belongs to

• Financial markets knowledge
• Investment appraisal (NPV, IRR)

Related concepts

• BondA bond is a debt security in which the issuer borrows from investors and promises to pay interest (coupons) and repay the principal at maturity. Key features are issuer, currency, coupon type (fixed, floating or zero), maturity, seniority and any embedded options; bonds are issued by governments, banks and companies.
• Yield curveA yield curve plots the yields of bonds of the same credit quality, such as government bonds, against their time to maturity. Its level, slope and curvature summarise market expectations of rates and term premia; the European Central Bank (ECB) publishes daily euro area yield curves, including spot and forward rates.
• DurationDuration measures how sensitive a bond's price is to changes in interest rates. Macaulay duration is the weighted average time to receive the bond's cash flows; modified duration gives the approximate percentage price change for a 1 percentage point change in yield. A modified duration of 6 means about a 6% price fall if yields rise by 1 point.
• Accrued interestAccrued interest is the coupon interest earned on a bond since the last coupon date that the buyer pays to the seller on settlement. Bonds are quoted at the clean price; the dirty price paid equals clean price plus accrued interest, calculated with the bond's day count convention.

Sources

• Euro area yield curves, ECB (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.