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Is yield to maturity for a 10-year Treasury security for a year or half a year?

timlee

Joined
8/31/11
Messages
29
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A 10-year Treasury security pays coupons semiannually. I wonder if its yield to maturity looked up in a Bloomberg terminal is for a year or for half a year?

If it is for a year, is it the compounded interest rate or two times the semiannual interest rate?

Thanks and regards!
 
yield to maturity measures the IRR, internal rate of return, and it is the compounded interest rate.

You should be able to use YTM to discount all the future cash flows of that bond to its dirty price today.
 
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