For most healthy firms, the YTM on their bonds is the rate of return investors expect from holding their bonds to maturity.

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Yield to maturity (YTM) is the expected rate of return that an investor will earn if they hold a bond until its maturity. It takes into account the price paid for the bond, the coupon rate, and the length of time until maturity. For healthy firms, investors typically expect to receive the full value of their investment back, plus interest, upon maturity, which is reflected in the YTM.

For Most Healthy Firms, the YTM on Their Bonds Is