Yield to Maturity

The interest rate that equates the present value of a loan or bond's cash flow to its current price. Yield to maturity assumes that the loan or bond will be held to maturity, and that all interim cash flows will be reinvested at a rate equal to the yield to maturity. If the loan or bond is not held till maturity, or if interim cash flows are reinvested at a rate that differs from the yield to maturity, an investor's actual yield will differ from the yield to maturity. (Since the yield to maturity calculation equates a bond's cash flows to its current price, this yield calculation considers both coupon income and any capital gain or loss the investor will realize by holding the bond till maturity.)

Investing in wiseAlpha Notes involves risks including potential illiquidity and loss of investment. Our Notes are not deposit based or capital protected and are not covered by the Financial Services Compensation Scheme.The interest rate on our products is not comparable to that of a bank savings account. See Risk Statement.

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