What this calculator does
Yield to call (YTC) works out approximate return on a callable bond if the issuer redeems it early. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaYTC ≈ (i + (Pc − Pm)/n) / ((Pc + Pm)/2) × 100 where i = annual coupon, Pc = call price, Pm = market price, n = years to call
The inputs explained
| Field | What to enter |
|---|---|
| Face value ($) | A number, measured in your currency. Starts at 1000. |
| Coupon rate (%) | A number, measured in %. Starts at 6. |
| Call price ($) | A number, measured in your currency. Starts at 1030. |
| Current market price ($) | A number, measured in your currency. Starts at 1050. |
| Years until callable | A number. Starts at 4. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with face value
Every other input is held at the calculator’s starting values while face value varies. Select any row to load that scenario into the calculator.