Variants of Yield To Maturity
As some bonds have different characteristics, there are some variants of YTM:
- Yield to call: when a bond is callable (can be repurchased by the issuer before the maturity), the market looks also to the Yield to call, which is the same calculation of the YTM, but assumes that the bond will be called, so the cashflow is shortened.
- Yield to put: same as yield to call, but when the bond holder has the option to sell the bond back to the issuer at a fixed price on specified date.
- Yield to worst: when a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.
Read more about this topic: Yield To Maturity
Famous quotes containing the words variants of, variants, yield and/or maturity:
“Nationalist pride, like other variants of pride, can be a substitute for self-respect.”
—Eric Hoffer (1902–1983)
“Nationalist pride, like other variants of pride, can be a substitute for self-respect.”
—Eric Hoffer (1902–1983)
“Your hand
skilled to yield death-blows, might break
With the slightest turn no ill will meant
my own lesser, yet still somewhat fine-wrought,
fiery-tempered, delicate, over-passionate steel.”
—Hilda Doolittle (1886–1961)
“Adolescence is society’s permission slip for combining physical maturity with psychological irresponsibility.”
—Terri Apter (20th century)