easy · Private Credit & Debt loan-structures-instruments
A lender is performing a 'Yield to Worst' (YTW) calculation on a bond trading at a premium. The bond has a 10% coupon, a maturity of 10 years, and is callable at par in 2 years.
Which scenario is most likely to produce the YTW?
- The current cash yield
- Yield to Maturity in 10 years
- Yield to Call in 2 years
- The nominal coupon rate
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