Yield To Call

What is 'Yield To Call'

Yield to call is 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.

BREAKING DOWN 'Yield To Call'

Generally speaking, bonds are callable over several years and are normally called at a slight premium.

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RELATED FAQS
  1. What is the difference between yield to maturity and the yield to call?

    Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing ... Read Answer >>
  2. Can I use the current yield to compare a bond to an equity investment?

    Learn about the different types of yield measurements for stocks and bonds, and find out how to make careful comparisons ... Read Answer >>
  3. What is the difference between the yield of stock and the yield of a bond?

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  4. What is the relationship between current yield and yield to maturity (YTM)?

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  5. What is the most common solvency ratios used in fundamental analysis?

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  6. Why do companies issue callable bonds?

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