Yield To Call (YTC)
Yield To Call (YTC) is the annualized rate of return on a callable bond assuming the issuer redeems at the first call date and the investor receives the call price on that date, along with coupons paid through the call.
Example: Example: A $1,000 par callable bond with a 5% annual coupon trades at $970, has a first call date in 3 years, and a call price of $1,020. If the issuer calls on year 3, the YTC represents the annualized return from coupons through year 3 and the $1,020 call price.
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