™A fixed-rate bond bought below face value can have yield to maturity above its coupon if scheduled payments and principal are received; assumptions and reinvestment matter.
Bonds & Rates
Yield to maturity
The discount rate that equates a bond’s price with its scheduled coupon and principal payments. Realizing that compounded return requires the relevant payment and reinvestment assumptions; it is not guaranteed.
Plain-English context
Put the definition to work.
YTM is the discount rate for scheduled payments, not a guaranteed realized return; default, reinvestment and sale timing matter.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — bonds and fixed income