Yield to Call Calculator

Historical Background

Yield to Call (YTC) offers bond investors a measure of the return they can expect if the bond issuer decides to pay off the bond before its maturity date. This is particularly relevant in environments where interest rates are falling, as issuers look to reduce their financing costs by repaying old bonds with higher interest rates and issuing new bonds at lower rates.

Calculation Formula

The Yield to Call can be calculated using the following formula:

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