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Fixed Income

Yield to Maturity (YTM)

The eventual yield that an investor will receive upon holding a bond until its maturity is known as the rate of return. This metric takes into account both the initial investment and any interest payments made throughout the bond's lifespan. As such, it serves as a crucial indicator of the potential profitability of a bond investment. Understanding the concept of rate of return is essential for anyone looking to navigate the complex world of finance and make informed investment decisions.
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