Yield that would be realized on a callable bond in the event that the bond was...
The yield computed assuming cash flow is the coupon stream to the call date, when the issue is redeemed at its call price.
The rate of return to the investor earned from payments of principal and interest, with interest compounded semi-annually at the stated yield, presuming that the security is redeemed on a specified call date (if the security is redeemed at a premium call price, the amount of the premium is also reflected in the yield). Yield to call takes into account the amount of the premium or discount at the time of purchase, if any, and the time value of the investment. Compare: CURRENT YIELD; YIELD TO MATURITY; YIELD TO WORST. See: PRICING CALL.
Yield on a bond which will be called by the issuer at the first call date. Important for corporate bonds.
The rate of return to the investor earned from payments of principal and interest, with interest compounded semiannually at the stated yield presuming that the security is redeemed prior to its maturity date.
The program automatically calculates the Yield to Call if you choose to complete the Call Date and Call Price fields. If the call date you enter is not a coupon date, then the program calculates the YTC based on the nearest coupon date (or the maturity date if no coupon dates remain).
The yield on a bond to the call date, at the call price.
The rate of return on a bond from the date acquired to its call date.
Yield on a bond assuming it will be redeemed by the issuer at the first call date specified in the indenture agreement.
The rate of return an investor would receive if the securities held by a portfolio were held until their call dates. This yield is valid only if the securities are called prior to maturity.
Yield to call is the same as Yield to Maturity with one exception. The yield to call calculation assumes that the bond will be redeemed by the issuer on the first call date and at the specified call price.
For a bond that may be called prior to maturity, the yield to the first call date.
Percentage rate of bond (note), bought and held until call date.
The yield of a bond that an investor holds until the call date, calculated based on the coupon rate, the length of time to the call date, and the market price.
The return available until the call date.
The yield that would be realized on a callable bond in the event that it was redeemed by the issuer on the next available call date.
Some bonds can be called (redeemed) by the issuer on specified dates throughout the life of the bond. Based on the current price of a bond, the yield to all calls should be calculated, and the investor should note the lowest yield to call and the yield to maturity. This will give the investor their worst case scenario.
A yield on a security calculated by assuming that interest payments will be paid until the call date, when the security will be redeemed at the call price.
The percentage rate of a bond or note if the investor buys and holds the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several years and normally are called at a slight premium. The calculation of yield to call is based on coupon rate, length of time to call, and market price.
The percentage a bond will yield to the date at which it is eligible to be redeemed by its issuer.
Rate of return an investor earns from a bond assuming the bond is called (redeemed) by the issuer on the first call date specified in the indenture agreement prior to the bond's maturity date. The formula used to calculate yield to call is the same as "yield to maturity" except that the principal value at maturity is replaced by the first call price and the maturity date is replaced by the first call date. The lower of the yield to call and the yield to maturity will be used to determine an investor's realistic rate of return. See: Call Price; Yield To Maturity
The yield of a bond or note if you were to buy and hold the security until the call date. This yield is valid only if the security is called prior to maturity. The calculation of yield to call is based on the coupon rate, the length of time to the call date, and the market price.
The rate of return on an investment that accounts for the cash difference between a bond's acquisition cost and its proceeds calculated to the earliest date that the bonds can be called in by the issuing corporation.