Yield to Par Call

yield to par call

The annual return from owning a bond assuming a redemption on the first date the bond can be called at face value.

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Yield to Par Call

The lowest possible yield on a callable bond. If a callable bond is called before maturity and redeemed at par, the bondholder only earns interest on the time that has elapsed between purchasing the bond and its early redemption. This yield can be significantly less than what would have been earned had the bond been held until maturity. The yield to par call assumes that the bond is called on the first date permitted in the bond agreement. Determining the yield to par call is an important part of risk analysis in evaluating a callable bond. It is also called yield to worst and yield to current call. See also: Yield to call, yield to maturity.