With our yield to call calculator, you can quickly determine the annual return an investor would receive if a particular bond is held until its first call date.
How to Find Yield to Call
To calculate a bond's yield to call, you'll need to know the:
face value (also known as "par value")
number of years to the call date
frequency of payments
call premium (if any)
current price of the bond
Calculating Yield to Call Example
For example, you buy a bond with a $1,000 face value and an 8% coupon for $900. The bond pays interest twice a year and is callable in 5 years at 103% of face value.
Using our YTC calculator, enter:
- "1,000" as the face value
- "8" as the annual coupon rate
- "5" as the years to call
- "2" as the coupon payments per year
- "103" as the call premium, and
- "900" as the current bond price.
Click the CALCULATE button to find "yield to call." This number tells you the bond's return if you were to buy it today and hold it until the call date.