Component |
Description |
Coupon Rate |
The annual interest rate paid by the bond. |
Current Market Price |
The current price at which the bond is trading. |
Maturity Date |
The date on which the bond matures. |
Call Date |
The earliest date on which the bond can be called by the issuer. |
Yield to Worst (YTW) |
The lowest yield that can be received on a bond without the issuer actually defaulting. |
Formula |
YTW is calculated by determining the yield to maturity and the yield to call, and then selecting the lower of the two yields. |
Purpose |
Used to measure the lowest potential yield that can be received on a bond, taking into account callable features. |