Bond Yield to Call Calculator
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Understanding Yield to Call
Yield to call (YTC) is the return a bondholder can expect if the bond is called by the issuer before it reaches maturity. This calculation assumes that:
- The bond will be called at the earliest call date
- All coupon payments are made on time
- The bond is called at the call price
YTC is particularly important for callable bonds when interest rates are falling, as issuers are more likely to call bonds to refinance at lower rates.