The annual rate of return on an investment, which is calculated using discounted cash flow analysis. See internal rate of return.

yield to maturity

The "internal rate of return" on an investment. Considers all inflows and outflows of investment returns and their timing. Example: An income-producing property requires a $10,000 investment. It promises a $1,000 annual return for 5 years, then resale proceeds of $15,000. The "yield to maturity" is 17.1%. See "internal rate of return" for formulas.