Yield to worst

CFA Level I Glossary

Yield to worst is the lowest yield among yield to maturity and the yields to each plausible call or put date under the bond’s embedded options, using the relevant call or put prices. It is a conservative yield quote for bonds the issuer or investor may retire early. For option-free bonds it collapses to YTM. Always assuming YTM is the relevant yield on callables ignores yield to worst.

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