YIELD TO CALL

The percentage rate of a bond or note, if you were to buy and hold the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several years and normally are called at a slight premium. The calculation of yield to call is based on the coupon rate, length of time to the call and the market price.

The annualized rate of return a bond provides to specified call date and call price. The yield-to-call calculation is similar to the yield-to-maturity calculation, except that a call date and call price are used in lieu of the maturity date and maturity value.