A bond's yield to maturity is the annualized percentage return of both interest and capital gains or losses if the bond were held until it matured.

Question

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Yield to maturity (YTM) considers both the interest payments (coupon payments) a bondholder receives over the life of the bond and any capital gain or loss that occurs when the bond matures or is sold at a different price from its purchase price. It provides a comprehensive measure of the bond's annualized return if held to maturity.

A Bond's Yield to Maturity Is the Annualized Percentage Return