Enter the face value, bond price, years to maturity, call price, and years to call. The calculator will determine the yield to call %.
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Yield to Call Formula
The following formula is used to calculate the yield to call ratio.
Yield To Call Definition
A yield to call is the return of a bondholder to see if the bond they own helps all the way until its call date.
Yield to Call Example
How to calculate yield to call?
- First, determine the annual interest.
Calculate the annual interest.
- Next, determine the call price and market price.
Calculate the call price and market price.
- Next, determine the number of years to call.
Determine the total years until the bond call date.
- Finally, calculate the yield to call ratio.
Calculate the yield to call using the equation above.
Yield to call is a term used to describe the return a bondholder will see if a bond is held until its call date. The call date must occur sometime before the bond reaches maturity.
The call price in terms of yield to call is the price at which the bond can be purchased by two financial institutions.
The number of years is the length at which the bond can be purchased at the call price.