Calculate the yield of a callable bond assuming it is called by the issuer at the first available call date.
Bond Details
Call Provisions
Often > Face Value
Yield Analysis
Yield to Call (YTC)4.24%Assuming called in 5 years
Price vs Market Yield Sensitivity
About this calculator
Overview
Yield to Call (YTC) is the yield an investor would receive if a callable bond is held until its first or next call date. It is a critical metric for bonds trading at a premium.
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Pro Tips
Bonds are typically called when market interest rates drop, allowing the issuer to refinance at a lower cost.
Investors should calculate both Yield to Maturity (YTM) and Yield to Call (YTC). The lower of the two is known as 'Yield to Worst' (YTW).
Call protection is a period during which the bond cannot be called by the issuer.
The call price is often set at a premium to face value (e.g., $102) to compensate the investor for the call.
