YTM means Yield to Maturity. Academically YTM is defined as the market interest rate that equates a bond's present value of interest payments and principal repayment with its price.
To understand it better, YTM can be defined as the compound rate of return that investors will receive for a bond with a maturity greater than one year if they hold the bond to maturity and reinvest all cash flows at the same rate of interest. It takes into account purchase price, redemption value, coupon yield, and the time between interest payment.
