yield to call

yield to call
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
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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. Bloomberg Financial Dictionary

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yield to call ˌyield to ˈcall noun yields to call PLURALFORM [countable]
FINANCE the yield that an investor will get from a bond if they redeem it (= change it into cash) at the first call (= when they can be redeemed before maturity):

• Many junk bonds currently are trading at their yield-to-call price, which assumes that the bonds will be redeemed by the issuer at the first call date.

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yield to call UK US noun [C] (plural yields to call) (WRITTEN ABBREVIATION YTC)
► FINANCE the total yield (= profit) of a bond, etc. if the bond is kept until the call date (= when it must be paid back), when this is earlier than the maturity date (= the original date on which it was planned to pay it back): »

If the investment is called early at a lower price than what you paid, your yield to call will be lower.

→ Compare YIELD TO MATURITY(Cf. ↑yield to maturity)

Financial and business terms. 2012.

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Look at other dictionaries:

  • 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

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  • 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

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