Work out yield to call instantly with clear inputs, formula shown and shareable results.
Yield to call assumes the issuer redeems at the first call date and price. For a bond trading above the call price the capital loss at redemption drags the yield below the current yield, which is why callable premium bonds should be judged on yield to worst.
Yield to call
Price = Σ coupon/(1+y)^k + call price/(1+y)^n, solved for y
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Issuers call when rates have fallen, so you are repaid early and must reinvest at lower yields.
The lowest of yield to maturity and every yield to call — the prudent figure to quote on a callable bond.