Irish Calculators
Saving & investing

Bond Yield to Call Calculator

Estimate yield assuming a bond is redeemed on the call date you enter. The tool does not predict the issuer's decision or search a schedule for yield to worst.

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Your numbers

%
Contractual coupon, not market yield.
Anchor for the regular coupon schedule. A month-end anchor keeps all coupon dates at month-end; otherwise the day is preserved, clipped when needed.
With more than one payment both modes compound. Check the convention used by the bond quote.
Display currency only. Convert all inputs to this currency before calculation.
Your figures stay on this device.

How the calculation works

Yield to call evaluates one specified early-redemption scenario for a bond. It answers what yield the stated purchase price would imply if the issuer redeemed on your selected date for your selected amount, without predicting that event.

Discount all coupons through the selected call date plus the selected redemption amount; solve for the yield matching dirty purchase price.

  1. Stop the schedule at the assumed call

    Regular coupons are included until the chosen call date. The model allows a final shortened coupon period and prorates that coupon under its stated schedule.

  2. Add the call redemption

    The entered redemption replaces principal repayment at the scenario end. It is additional to the coupon due there, so do not include that coupon again in redemption.

  3. Solve the matching yield

    Discount the call-scenario receipts until their value matches the supplied dirty purchase price. The nominal result compounds at coupon frequency, with an effective annual equivalent shown separately.

Worked example: Check Yield to call (nominal annual)

Sample inputs demonstrate the method. They are not a forecast or product offer.

The first example calls after one year at redemption 1,000 and pays a 5% annual coupon. A purchase price of 1,000 therefore implies a 5% yield under that particular call scenario.

Face value
1000
Annual coupon rate (%)
5
Coupons per year
Annual
Settlement date
2026-01-01
Next coupon date
2027-01-01
Discounting convention
Compound fractional coupon periods
Assumed call date
2027-01-01
Total call redemption amount
1000
Price for the whole face value
1000
Price convention
Clean
Currency for all amounts
Euro (EUR)

Expected result

Yield to call (nominal annual)
5%
Worked example: Check Yield to call (nominal annual)

Sample inputs demonstrate the method. They are not a forecast or product offer.

Face value
1000
Annual coupon rate (%)
0
Coupons per year
Annual
Settlement date
2026-01-01
Next coupon date
2027-01-01
Discounting convention
Compound fractional coupon periods
Assumed call date
2027-01-01
Total call redemption amount
1100
Price for the whole face value
1000
Price convention
Dirty
Currency for all amounts
Euro (EUR)

Expected result

Yield to call (nominal annual)
10%

Understanding your result

The result changes with both call timing and redemption amount. Two possible calls should be examined as separate scenarios rather than averaged into one date.

This is not yield to worst and does not assess whether calling is economically attractive to the issuer. Its meaning remains conditional on the chosen cash-flow schedule.

Questions you might have

What does the result include?

Estimate yield to one specified call date and redemption amount, without assuming the issuer will exercise the call.

Which limits should I check?

One call scenario at a time. No prediction of exercise, yield-to-worst search or market call schedule.

Choosing the right inputs

Assumed call date
Use the date for the particular call scenario being examined. A full call schedule is not searched automatically.
Total call redemption amount
Enter the total call redemption amount for the face value entered. Do not substitute a per-100 quote without scaling it.
Price convention
Distinguish the clean quotation from the dirty amount including accrued coupon. The solver needs a consistent settlement-value basis.

Common mistakes to avoid

  • Do not confuse a call premium percentage with the total redemption amount required by this field.
  • Use a consistent face amount for price, coupons and redemption.

Assumptions to check

  • One call scenario at a time. No prediction of exercise, yield-to-worst search or market call schedule.
  • All calculations run on your device. Figures are scenarios based on your inputs, not investment recommendations.

Sources and method

Read our calculation and testing approach.