Yield to Call (YTC) Calculator

Your details

The principal amount of the bond, paid at maturity. Most bonds have a face value of 1,000.
The stated annual interest rate on the bond, as a percentage of face value.
%
How often the bond pays coupon interest. Most US bonds pay semi-annually.
The price you would pay to buy the bond today in the secondary market.
The price the issuer will pay to redeem the bond on the call date. Often slightly above face value (a call premium).
The number of years from today until the earliest date the issuer can call the bond.
years
Currency
Yield to Call (YTC)High yield
9.83%

Exact annualized return assuming the bond is called at the earliest call date

Approximate YTC0.0975%
Current Yield0.0833%
Annual Coupon Payment$80.00
Call Premium$50.00
Total Income if Called$490.00
9.83% %
Very low<2%Moderate2%-5%Competitive5%-9%High yield9%+
Annual Coupon$80.00
Call Premium$50.00
Total Net Income$490.00

Yield to call: 9.830% per year.

  • The bond trades at a discount (4.0% below par), which boosts YTC because you gain from price appreciation to the call price.
  • The issuer pays a call premium of 50.00 above face value, which improves your return if the bond is called.
  • The closed-form approximation (9.751%) differs from the exact YTC by 8 basis points. The exact figure accounts for compounding and is more reliable.
  • The current yield is 8.333%, which reflects only the income component and ignores price changes to the call date.

Next stepCompare YTC with the bond's yield to maturity (YTM). If YTC is lower than YTM, the issuer is likely to call, so YTC is the more realistic return target.

 = Powered by OnlyCalculators