What is the yield to call and why is it important to a bond investor

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What is the yield to call and why is it important to a bond investor

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Many bonds do not survive until their maturity date because they get paid early through a call provision. The yield to call is the yield that would be earned if the bond is purchased at today’s price and held until it is called by the issuer.  The computation incorporates the additional call premium that is paid with the principal.

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