Yield to maturity (YTM) tells bonds investors what their total return would be if they held the bond until maturity. YTM takes into account the regular coupon payments made plus the return of principal. As a result, YTM calculations for zero-coupon bonds differ from traditional bonds. The formula for calculating the yield to maturity on a zero-coupon bond is: Yield To Maturity = (Face Value/Current Bond Price)^(1/Years To Maturity)−1