Bond
Callable Bond Yield Calculator
Compare maturity and early-call scenarios instead of a single yield.
Results
Enter bond terms to explore the results.
Understand this calculation
Each scenario keeps coupons based on original face value and changes only redemption timing and amount. YTW is a conservative yield measure within the defined scenarios, not a guaranteed return.
See calculation method and assumptions
Formula
Price = Σ[t=1..N] Coupon/(1+y/m)^t + Redemption/(1+y/m)^N; YTW = min(YTM, YTC₁, …, YTCₖ)YTC assumes redemption at a specified coupon date and call price. YTW is the lowest nominal annual yield across maturity and all valid call scenarios.
Variables, rates and periods
- Face / Price
- Face is principal repaid at maturity; Price is the bond's value today.
- Coupon
- Coupon per period = face value × annual coupon rate / payments per year.
- YTM / y
- Nominal annual yield to maturity, entered as a percentage; discounting uses its decimal value divided by payments per year.
- m / N
- m is coupon payments per year; N = years to maturity × m. Coupons are paid at period end.
- Redemption / N
- Call price is per 100 face; N is whole coupon periods to call or maturity.
- YTW
- Minimum yield across maturity and all valid calls, not a guaranteed return.
Call scenario assumptions
- Valuation is on a coupon date, with up to five calls.
- Call years must precede maturity and span whole coupon periods.
- The final payment includes that coupon and call redemption.
- No default or irregular coupons.
Compare yield to maturity, yield to each call scenario, and yield to worst across the defined scenarios.
Worked example
- Maturity redemption is 1,000.
- Year-three call redemption is 1,030, while semiannual coupons remain 40.
- The minimum yield across the complete set is its YTW.
Frequently asked questions
What if no call scenarios are entered?
Only maturity is considered, so YTW equals YTM. If an entered scenario is invalid, YTW is N/A rather than silently excluding it.