How to Calculate Yield to Call for Callable Bond?
Yield to Call for Callable Bond calculator uses Yield to Call = ((Coupon Payment+(Theoretical Price of Call Option-Current Bond Price)/Number of Years to Track Growth)/
((Theoretical Price of Call Option+Current Bond Price)/2)) to calculate the Yield to Call, The Yield to Call for Callable Bond formula is defined as a formula which calculates the yield if a callable bond is called before maturity. It considers the call price and the remaining years until the bond can be called. Yield to Call is denoted by YTC symbol.
How to calculate Yield to Call for Callable Bond using this online calculator? To use this online calculator for Yield to Call for Callable Bond, enter Coupon Payment (CP), Theoretical Price of Call Option (C), Current Bond Price (CBP) & Number of Years to Track Growth (n_{y}) and hit the calculate button. Here is how the Yield to Call for Callable Bond calculation can be explained with given input values -> 0.548148 = ((20+(1220-150)/3)/
((1220+150)/2)).