Yield to Call

Wed, Jul 16th,2014
Yield to call is the yield on a bond assuming the bond will be redeemed by the issuer at the first?call date?specified in the?indenture agreement. Essentially, Yield-to-call (YTC) is the interest rate that investors would receive if they held the bond until the call date. The period until the first call is referred to as the?call protection?period. YTC is the rate that would make the bond's present value equal to the full price of the bond. For a sample calculation of this yield measure refer to the?Bond Yield Calculator?[KSO2]