- Yield To Call
- 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.
Generally speaking, bonds are callable over several years and are normally called at a slight premium.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
yield to call — ( YTC) The annual percentage yield of a security calculated using the yield to maturity formula but with the assumption that the security is called on the first call date or on the first par call date. American Banker Glossary The percentage rate … Financial and business terms
Yield to call — The percentage rate 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. Generally bonds are callable over several years and normally are called at… … Financial and business terms
Yield to maturity — The Yield to maturity (YTM) or redemption yield is the yield promised to the bondholder on the assumption that the bond or other fixed interest security such as gilts will be held to maturity, that all coupon and principal payments will be made… … Wikipedia
Yield To Worst - YTW — The lowest potential yield that can be received on a bond without the issuer actually defaulting. The yield to worst is calculated by making worst case scenario assumptions on the issue by calculating the returns that would be received if… … Investment dictionary
Yield (finance) — In finance, yield is a percentage that measures the cash returns to the owners of a security. Normally it does not include the price variations, at the difference of the total return. Yield applies to various stated rates of return on stocks… … Wikipedia
Yield-Based Option — A type of debt instrument based option that derives its value from the difference between the exercise price and the value of the yield of the underlying debt instrument. Yield based options are settled in cash. A yield based call buyer expects… … Investment dictionary
yield to maturity — The rate of return an investor receives if a fixed income security is held to maturity. Chicago Board of Trade glossary The percentage rate of return paid on a bond, note, or other fixed income security ( fixed income securities) if the investor… … Financial and business terms
Yield to maturity — The percentage rate of return paid on a bond, note or other fixed income security if you buy and hold it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity and market price. It assumes that… … Financial and business terms
Call Privilege — The provision in a bond indenture that gives the bond issuer the option to redeem all or part of the bond issue, at pre determined prices on certain specified dates. These dates are known as call dates and form the call schedule. The term call… … Investment dictionary
Yield to worst — The bond yield computed by using the lower of either the yield to maturity or the yield to call on every possible call date. The New York Times Financial Glossary … Financial and business terms