Yield to worst on a callable calculator

In short

Yield to worst on a callable, worked through in your browser.

Interactive: yield to worst on a callableHard

A callable bond is a bond plus a short option, and the borrower owns the option. So the yield anybody quotes is whichever of two numbers is worse for the holder — which is what "yield to worst" names.

Price (per 100) Annual coupon (per 100) Years to maturity Years to first call Call price (per 100)

Yield to maturity: —
Yield to the first call: —
Yield to worst: —
Distance between them: —
Price against par: —
Reading: —

Annual coupons and a single call date, which is the simplification that makes the arithmetic readable; a real schedule has several call dates and a day-count convention. Information and education only. Not advice, not a valuation, and not a quote for anything.

The idea behind it

This calculator belongs to Debt Capital Markets, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.

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Not advice. This explains how something works; it is not a recommendation, and nothing here is tailored to you. You can lose everything you put in — with leveraged instruments, considerably more. StrikeAndYield is not a regulated firm and provides no financial services.

The same in full — six points, and why each one matters

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Nothing here is tailored to you. This is written for a general audience. It does not consider your objectives, financial situation, knowledge, time horizon or tolerance for loss.
The examples are simplified. Worked examples use round numbers and leave out costs, spreads, taxes, collateral, settlement and market conventions that materially change real outcomes.
The models are teaching models. Formulas shown are standard textbook formulations. Institutions add calibration, live market data and credit, funding and capital adjustments — nothing here will reproduce a dealer’s quote or produce a valuation you can rely on.
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