Yield to call is a useful measure for bonds selling at a premium, but not for bonds selling at a discount.

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Yield to call is a measure of the return an investor can expect to receive if they hold a bond until it is called by the issuer. Bonds that are selling at a premium are trading above their face value, so the yield to call will be lower than the yield to maturity. This is because the investor will receive a lower return if the bond is called early. Bonds that are selling at a discount are trading below their face value, so the yield to call will be higher than the yield to maturity. This is because the investor will receive a higher return if the bond is called early.

Yield to Call Is a Useful Measure for Bonds Selling