interest-rates, security-analysisYield to maturity is defined as the rate at which calculating the price of the bond using this rate (i.e. discounting interest and principal payments at this rate) gives a present value equal to the market price of the bond. The YtM is defined on the same period lengths as the interest payments: if the security pays semi-annual coupons, then the YtM is an effective semi-annual rate (annualized by multiplying it by 12/6 = 2). What is the interpretation of the YtM defined on different period lengths than the interest payments? For example, calculating the (annualized) 1-month yield to maturity of a bond with annual coupons? What information does this provide to us, and how is it useful?
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