Yield-to-call on a bond with a coupon rate of 8% paid semi- annually, 10 years to maturity, a par value of $1,000 and a selling price of $1,071, callable after 5 years at $1,010 is

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The yield-to-call is calculated based on the bond being called at the first opportunity, which is after 5 years at the call price of $1,010. The yield-to-call considers the coupon payments, the call price, and the current price. Calculating this gives a yield-to-call of approximately 6.49%.

Yield-To-Call on a Bond with a Coupon Rate of 8