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Thus, a callable bond 's true yield, called the yield to call, at any given price is usually lower than its yield to maturity As a result, investors usually consider the lower of the yield to call and the yield to maturity as the more realistic indication of the return on a callable bondN – The number of coupon payments received in each year Practical Example Assume that you purchase a bond with a nominal coupon rate of 7%The term "yield to maturity" or YTM refers to the return expected from a bond over its entire investment period until maturity YTM is used in the calculation of bond price wherein all probable future cash flows (periodic coupon payments and par value on maturity) are discounted to present value on the basis of YTM 10 Bond Prices And Yields Ppt Video Online Download Bond yield to maturity formula