Bond Yield to Put (BYTC)

The term Yield to Call is often abbreviated as YTC. The calculation for Yield to Call is very similar to Yield to Maturity and equal to the Yield to Put calculation.

This tool is used to estimate the expected investment return on callable bond.

Difference Between Yield to Call and Yield to Put :

Yield to call, which is the yield of the bond up until the date the company calls the bond.

Yield to put, is the yield of the bond up until the date the bondholder puts the bonds back to the company.

Estimated Yield to Call Formula :

Approximate yield to Call on a bond = (Annual interest rate) + ( (price to call - Current price) / (Years to call) ) / (Price to call + current price)/2

Exact Yield to Put Formula :

Price = Coupon Payment/(1+rate)^-1 + Coupon Payment/(1+rate)^-2 + ... + Coupon Payment/(1+rate)^-n + Price to Call/(1+rate)^-n