yield to current call

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Yield to Current Call

The lowest possible yield on a callable bond. If a callable bond is called before maturity, 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 current call assumes that the bond is called on the first date permitted in the bond agreement. Determining the yield to current call is an important part of risk analysis in evaluating a callable bond. It is also called yield to worst. See also: Yield to call, yield to maturity.

yield to current call

The annual return from owning a bond assuming the earliest possible call.
References in periodicals archive ?
In the rising-interest-rate environment, Invesco expects that its risk/reward profile and tendency to trade on a yield-to-call basis may provide variable-rate preferred securities the potential to outperform the fixed-rate preferred market.
Always ask your broker or adviser about the yield-to-call," says Nozzarella, "to see what your true return will likely be.
This section is designed to clarify the meaning and distinctions among: coupon rate, yield-to-maturity, after-tax yield, taxable equivalent yield, current yield, realized compound yield, and yield-to-call.
If the bond is callable (redeemable by the issuer prior to maturity at a predetermined price), then it is also useful for the bondholder to compute the expected yield-to-call.
Yield-to-Worst measures the lowest of either yield-to-maturity or yield-to-call date on every possible call date.
The call option holder will pay the amount of proceeds necessary to maintain the original agreed upon yield-to-call.
125 percent of the principal amount of the notes, providing a yield-to-call (at par) of 7.
85% certain yield-to-call bonds) Non-Cyclicals & Other 71.