Yield to Call Law and Legal Definition
The yield to call is the rate of return that an investor would earn if he bought a callable bond at its current market price and held it until the call date given that the bond was called on the call date. It represents the discount rate which equates the discounted value of a bond's future cash flows to its current market price given that the bond is called on the call date. The calculation is similar to a yield to maturity calculation, except the bond is assumed to mature on the call date at the call price.
