yield to current call

Yield to Current Call

The lowest possible yield on a callable bond. If a callable bond is called before maturity, the bondholder only earns interest on the time that has elapsed between purchasing the bond and its early redemption. This yield can be significantly less than what would have been earned had the bond been held until maturity. The yield to current call assumes that the bond is called on the first date permitted in the bond agreement. Determining the yield to current call is an important part of risk analysis in evaluating a callable bond. It is also called yield to worst. See also: Yield to call, yield to maturity.

yield to current call

The annual return from owning a bond assuming the earliest possible call.