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Topical Terminology > Yield To Call (Ytc)



2 Definitions

Yield To Call (YTC)

For Yield To Call (YTC) we have terms and definitions in 2 topics. The topics are Frauds and Scams and Investing.



Yield To Call (Ytc) (Frauds and Scams)

Rate of return an investor earns from a bond assuming the bond is called (redeemed) by the issuer on the first call date specified in the indenture agreement prior to the bond's maturity date. The formula used to calculate yield to call is the same as "yield to maturity" except that the principal value at maturity is replaced by the first call price and the maturity date is replaced by the first call date. The lower of the yield to call and the yield to maturity will be used to determine an investor's realistic rate of return.


Yield To Call (Ytc) (Investing)

Rate of return an investor earns from a bond assuming the bond is called (redeemed) by the issuer on the first call date specified in the indenture agreement prior to the bond's maturity date. The formula used to calculate yield to call is the same as "yield to maturity" except that the principal value at maturity is replaced by the first call price and the maturity date is replaced by the first call date. The lower of the yield to call and the yield to maturity will be used to determine an investor's realistic rate of return.

See Also: Call Price; Yield To Maturity




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