Implied YTM
The yield-to-maturity that reconciles the bond's market price with its cash flows.
Implied YTM is the yield that, when you discount the bond's future cash flows, produces the bond's current market price. It's solved by working backwards from price to yield — the reverse of typical bond pricing. If you observe a bond trading at 95 (clean price), implied YTM tells you 'what yield the market is demanding given this price.' This is useful for price discovery: if your model assumes 5% YTM but implied YTM is 6%, the market is pricing in more risk than your assumption. Implied YTM is also how traders quickly infer yields when prices update faster than yield quotes.