BOND PRICING
Yield to Worst
Identifies the lowest conventionally calculated yield among permitted redemption scenarios.
Formula
min(YTM, eligible call/redemption yields)
Variables: YTM yield to maturity; call/redemption yields
What it means
Identifies the lowest conventionally calculated yield among permitted redemption scenarios.
Example
If YTM is 5.1% and yield to first call is 4.6%, yield to worst is 4.6%.
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.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.