yield to worst

Yield to Worst

The yield to maturity if the worst possible bond repayment takes place. If market yields are higher than the coupon, the yield to worst would assume no prepayment. If market yields are below the coupon, the yield to worst would assume prepayment. In other words, yield to worst assumes that market yields are unchanged.

Notes:

Yield to worst is the lowest quoted yield.

See also: Bond, Maturity, Yield, Yield to Maturity

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Yield to worst

The bond yield computed by using the lower of either the yield to maturity or the yield to call on every possible call date.

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yield to worst

The lowest possible yield from owning a bond considering all potential call dates prior to maturity.