Yield to call %

Yield to call % represents the expected annual return if the bond is held until its next call date and redeemed by the issuer. It accounts for all coupon payments and is based on the bond's purchase price, assuming the bond is called on the next scheduled call date.

The formula is:

Yield to call = (Current coupon % / Close % * 100) + (((Face value * Call next price / 100) - Close) / Close) / Years to call * 100

Key Terms:

• Current coupon: The interest rate the bond pays relative to its face value.
• Face value: The amount the issuer promises to pay the bondholder at maturity.
• Call next price: The price at which the bond issuer can repurchase the bond from holders on the next call date.
• Years to call: The time remaining until the bond's next call date, expressed in years.