Yield To Maturity (ytm)
Sum total of the annual effective rate of return earned by an owner of a bond if that bond is held until its maturity date. This effective return includes the current income generated by the bond as well as any difference in the face value of the bond and the bond's purchase price. The relationship of YTM and the bond's coupon rate is as follows: if the purchase price of the bond is greater than the face value of the bond (purchase made at a premium), the YTM is lower than the coupon rate (rate printed on bond certificate); if the purchase price of the bond is less than the face value of the bond (purchase made at a discount), the YTM is higher than the coupon rate; and if the purchase price of the bond is equal to the face value of the bond, the YTM is equal to the coupon rate.
Popular Insurance Terms
Income (premiums + investment earnings) minus disbursements (dividends + death claims + policies surrendered for benefits + general expenses). ...
Same as term Class: group of insureds with the same characteristics, established for rate-making purposes. For example, all wood-frame houses within 200 feet of a fire plug in the same ...
Changing state of the economy associated with changes in human wants and desires such that losses or gains occur. Dynamic changes are not insurable. ...
Term in pensions; leaving a job before normal retirement age, subject to minimum requirements of age and years of service. There usually is a reduction in the monthly retirement benefit. ...
Insurance under the personal automobile policy (pap) through a named non owner coverage endorsement offering protection for liability, uninsured motorists, and medical payments to a named ...
Structured product designed to meet specific needs of the insured that may involve any of the following funding arrangements: loss portfolio transfers in which the self-insurer transfers ...
Individuals who inherit assets as the result of being named in a will. ...
Entitlement of an employee to benefits immediately upon entering a retirement plan. As benefits are earned, they are credited to the employee's account. These "portable" future benefits can ...
Factors on the application that must be evaluated in order to complete the underwriting process: age; sex; physical condition; personal health history; family health history; financial ...
Have a question or comment?
We're here to help.