Deposits and bonds
How to buy Ukrainian government bonds (OVDP): step by step via Diia, a bank or a broker
Where to buy OVDP, why 14% on bonds equals 18% on a deposit, the Diia fee, coupons, redemption and selling early.
Yield to maturity: what it means
Yield to maturity is a bond's annual return taking into account the purchase price, coupons and time left until redemption.
Yield to maturity shows the annual percentage return you will get if you buy a bond at the current price and hold it until its maturity date. It already reflects the purchase price, all coupons and the term, so it is the key figure for comparing bonds.
Comparing bonds by price is a mistake: a cheaper bond is not necessarily better if it has a lower coupon or a longer term.
The yield to maturity on Ukrainian government bonds (OVDP) is tax-free, so it can be compared directly with inflation.
In detail, with examples: How to buy Ukrainian government bonds (OVDP): step by step via Diia, a bank or a broker
Related terms
Coupon Government bonds (OVDP) Real return
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Deposits and bonds
Deposit or government bonds: which pays more after tax
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