Yield to Call (YTC) Calculator

Calculate the expected return on a callable bond if it is called by the issuer before maturity. Understand your Yield-to-Worst to make informed investment decisions.

New to YTM?Start with the YTM Calculator

Bond Details

Enter callable bond parameters to calculate YTC

What is Yield to Call?

Yield to Call (YTC) is the return you'll receive if the bond issuer exercises their right to buy back the bond before maturity at the call price. Issuers typically call bonds when interest rates fall, allowing them to refinance at lower rates.

Fill in the bond details to see results

Understanding Callable Bonds

Call Risk

When you buy a callable bond, you face "call risk" - the issuer can redeem the bond before maturity. This typically happens when interest rates fall, and the issuer can refinance at lower rates. As an investor, you lose future high coupon payments and must reinvest at lower prevailing rates.

When are Bonds Called?

→Interest rates have fallen significantly since issuance
→Issuer's credit rating has improved, allowing cheaper refinancing
→Bond is trading at or above the call price in the market

Yield-to-Worst (YTW)

YTW is the most conservative yield measure for callable bonds. It assumes the worst-case scenario for the investor - whether that's the bond being called early or held to maturity. Always use YTW when evaluating callable bond investments to avoid overestimating your returns.

Investment Strategy

Never pay significantly above the call price for a callable bond. If the bond is called, you'll incur a capital loss. Look for callable bonds trading below call price with attractive YTW. Also consider the call protection period - bonds with longer call protection offer more certainty.