yield to maturity

The total annual return on a bond investment if held to maturity. For example, if a bond is purchased at less than its maturity value, the yield to maturity includes the annual interest plus the gain as the bond increases from the investment amount to the maturity value.

If the bond is purchased at more than its maturity value, the yield to maturity includes the annual interest minus the loss as the bond decreases from the investment amount to the maturity value.