Glossary of Municipal Securities Terms


The rate of return to the investor earned from payments of principal and interest, with interest compounded semi-annually at the stated yield, presuming that the security remains outstanding until the maturity date. Yield to maturity takes into account the amount of the premium or discount at the time of purchase, if any, and the time value of the investment. Compare: CURRENT YIELD; YIELD TO CALL; YIELD TO WORST.

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