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BOND PRICING

Yield to Call

Measures the annualized yield assuming a callable bond is redeemed on a specified call date.

Formula

P = Σ C/(1+y)^t + K/(1+y)^n

Variables: P price; C coupon; K call price; y yield; n periods to call

What it means

Measures the annualized yield assuming a callable bond is redeemed on a specified call date.

Example

Use the call price and call date instead of final maturity when solving the bond cash-flow equation.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.