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Yield to Call (YTC) Calculator

This calculator estimates a bond's Yield to Call (YTC) — the annualized return an investor would earn if the bond is called at the specified call date and price. Enter the bond's market price, par value, coupon rate, call price, years until the call, and coupon frequency.

Results are numeric estimates that assume timely coupon payments, that the issuer calls the bond at the stated call date and price, and that reinvestment of coupons occurs at the same yield. This tool is for informational purposes only and does not constitute investment advice.

Updated Nov 16, 2025

Inputs

Results

Updates as you type

Yield to Call (annualized)

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OutputValueUnit
Yield to Call (annualized)—%
Primary result—

Visualization

Methodology

We model the bond as a sequence of fixed periodic coupon payments and a single redemption (call) at the specified call date. The YTC is the annualized internal rate of return that solves the present-value equation: market price equals discounted value of coupon stream plus call redemption.

Numerical solution: the calculator uses a constrained root-finding routine (iterative solver) to find the periodic yield that satisfies the price equation, then annualizes the periodic yield by multiplying by the payment frequency. The solver enforces stability checks, convergence tolerance, and sensible bounds to avoid spurious results.

Accuracy and numerical best practices: iterative algorithms are implemented following recommended numerical guidance to minimize rounding and overflow. Users should expect small numerical differences across implementations due to floating-point arithmetic; see IEEE floating-point recommendations and NIST guidance for numerical reproducibility.

Worked examples

Example: 5% coupon bond, par 1000, price 950, callable at 1000 in 5 years, semiannual payments. The calculator computes the periodic root and returns the annualized YTC.

If call_price is quoted as a percent of par, convert it to absolute call price before entering (e.g., 101% of 1000 = 1010).

Key takeaways

The calculator numerically solves for the YTC that equates current market price with the present value of coupon payments and the call redemption at the chosen call date. Use conservative inputs and treat outputs as indicative.

For bonds with multiple embedded options or complex schedules, use a multi-scenario cash-flow model or consult a fixed-income specialist.

Further resources

Expert Q&A

Is YTC the same as Yield to Maturity (YTM)?

No. YTC assumes the bond is called at the specified call date and price; YTM assumes the bond is held to final maturity. For callable bonds, the lower of YTM and YTC often represents the worst-case reinvestment scenario.

What assumptions does this calculator make?

Assumes coupon payments are made on schedule, the issuer calls the bond at the entered call date and price, coupons can be reinvested at the calculated yield, and there are no taxes, fees, or transaction costs. Real-world outcomes may differ.

How accurate is the numerical result?

Results are computed with a robust iterative solver and a conservative convergence tolerance. Small differences may occur due to floating-point arithmetic. For critical decisions, validate with institutional-grade tools or a licensed professional. See IEEE and NIST numeric guidance in citations.

What if the solver fails to converge?

If the solver fails, the calculator will report no solution. Common causes include inconsistent inputs (for example, price implying a negative yield outside solver bounds) or inputs that imply multiple roots. Adjust initial guesses or input bounds and consult a professional if needed.

Can this calculator price callable bonds with multiple call dates or sinking funds?

This version handles a single specified call date. Bonds with multiple embedded options, step-up schedules, or sinking funds require a more advanced cash-flow model.

Sources & citations