what does a higher ytm indicate 
whether or not a higher ytm is positive depends on specific circumstances a higher ytm might indicate a bargain opportunity is available since the bond in question is available for less than its par value however investors must determine whether or not this discount is justified by fundamentals such as the creditworthiness of the company issuing the bond or the interest rates presented by alternative investments the bottom linea bond s yield to maturity is the internal rate of return required for the present value of all future cash flows including face value and coupon payments to equal the current bond price ytm assumes that all coupon payments are reinvested at a yield equal to the ytm and that the bond is held to maturity bond investments include municipal treasury corporate and foreign 2