Redemption Yield
Redemption yield estimates a bond's annualized return from coupon income plus gain or loss to a redemption date.
Fixed-income terms for redemption yield, yield to average life, yield to call, yield to maturity, and yield to worst.
Redemption, call, and worst yields estimate bond return under different repayment assumptions.
Use this branch when a bond can mature, be called, amortize, or be evaluated under a worst-case redemption scenario. These measures are especially important for callable, amortizing, mortgage-backed, and premium bonds.
| Term | What it assumes |
|---|---|
| Yield to Maturity | The bond is held to final maturity under the stated cash-flow assumptions. |
| Yield to Call | The bond is redeemed on a specified call date. |
| Yield to Worst | The lowest yield among specified call, maturity, or redemption scenarios. |
| Yield to Average Life | Return based on an average principal repayment life rather than final maturity alone. |
| Redemption Yield | Yield based on expected redemption value and timing. |
Read the call schedule, maturity date, sinking-fund terms, amortization schedule, price, coupon, settlement date, and reinvestment assumptions. For callable premium bonds, yield to maturity may overstate the return if the issuer can redeem earlier at a lower effective yield.
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Redemption yield estimates a bond's annualized return from coupon income plus gain or loss to a redemption date.
Yield to average life estimates bond yield using weighted-average principal repayment timing instead of final maturity alone.
Yield to call estimates a callable bond's annualized return if the issuer redeems it on a stated call date.
Bond return measure that links price, coupons, and principal repayment under a hold-to-maturity assumption.
Yield to worst is the lowest non-default yield from a bond's maturity, call, or other contractual redemption outcomes.