Yield to Call Calculator

Calculate Yield to Call







Formula

To calculate the yield to call:

\[ \text{YTC} = \left( \frac{C + \frac{FV - P}{YTC}}{\frac{FV + P}{2}} \right) \times 100 \]

Where:

What is Yield to Call?

Yield to Call refers to the expected rate of return an investor will receive if they hold a callable bond until the issuer exercises its right to call or redeem the bond before its scheduled maturity date. It helps investors evaluate the potential return and risks associated with callable bonds.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ \text{YTC} = \left( \frac{50 + \frac{1000 - 950}{5}}{\frac{1000 + 950}{2}} \right) \times 100 \approx 5.74\% \]

The Yield to Call is approximately 5.74%.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ \text{YTC} = \left( \frac{60 + \frac{1000 - 980}{10}}{\frac{1000 + 980}{2}} \right) \times 100 \approx 6.10\% \]

The Yield to Call is approximately 6.10%.