The yield-to-maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate.

YTM is the internal rate of return of an investment in a bond if the investor holds the bond until maturity and if all payments are made as scheduled. YTM evaluates the attractiveness of one bond relative to other bonds of different coupons and maturity in the market. The formula for YTM involves solving for the interest rate.

Investors can measure the anticipated changes in bond prices given a change in interest rates with the duration of a bond. Duration represents the price change in a bond given a 1% change in interest rates. This practical definition is the modified duration of a bond. Bonds with long maturities, as well as bonds with low coupons, have the greatest sensitivity to interest rate changes.