effective interest rate that a bondholder will earn if the bond is held until
maturity. Yield-to-maturity takes into account the bond’s purchase price, its
current market price, the coupon rate,
which is the interest rate that the bond pays, and the amount of time remaining
until the bond matures. Yield-to-maturity is the most accurate representation
of how much a bond will actually receive if the bond is held until maturity.