Yield to maturity (YTM) is a financial term that represents the total return an investor can expect to earn if a bond is held until it matures. It takes into account the bond's current market price, its face value, the interest payments, and the time remaining until maturity. YTM is expressed as an annual percentage rate. Calculating YTM helps investors compare the profitability of different bonds. A higher YTM indicates a potentially better return, but it may also come with higher risk. Understanding YTM is essential for making informed investment decisions in the bond market.