Ch.10 · Risk Measures and Ratios · medium
What is 'yield to maturity' (YTM) for a debt mutual fund?
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EXPLANATION
YTM for a debt fund is the weighted average of the YTMs of all bonds in the portfolio. It represents the approximate expected annualised return if all bonds are held to maturity and all coupon payments are reinvested at the current YTM. It is an important indicator of potential returns but actual returns may differ due to interest rate changes and credit events.
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