yield to worst


Also found in: Acronyms.

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.

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 worst

The lowest possible yield from owning a bond considering all potential call dates prior to maturity.
References in periodicals archive ?
Net proceeds will be used for general corporate purposes that may include financing of potential acquisitions and the add-on notes priced at 108.75% plus accrued interest from 15 October 2013, to yield to worst 5.704%.
Further, these additional notes will be issued at a price equal to 100.250% of the principal amount thereof, resulting in a yield to worst of 7.823% and the sale of these will close on 22 November 2o13, subject to the satisfaction of customary closing conditions.
According to the company, the additional notes will be issued at an offering price of 97.0% of the principal amount for a yield to worst of 8.163%.
Resulting in a yield to worst of 5.503%, the public offering price was 101.5% of the principal amount of the notes and the offering will close on 19 August 2013, subject to satisfaction of customary closing conditions.
According to the companies, the additional notes will be issued at an offering price of 102% of the principal amount for a yield to worst of 7.202%.
The company said the new notes were sold at 103.75% of par, resulting in a yield to worst of 4.884% with respect to the new notes.
Also, the new notes were sold at 103.75% of par that resulted in a yield to worst of 4.884%.
The company stated the additional senior notes were priced at 105.00% of par for a yield to worst of 6.993%.
Under an agreement, the price to investors will be 103.0% of the principal amount, plus accrued interest from 15 October 2011, for a yield to worst of 7.281% with respect to the additional notes, stated the company.