The yield to call
A)is important if interest rates have fallen
B)is important if interest rates have risen
C)equals the yield to maturity
D)equals the current yield

Question

Quizplus · Accepted Answer

The yield to call is important if interest rates have fallen because issuers are more likely to call the bond before maturity to refinance at a lower interest rate, making the yield to call a relevant measure for investors.

The Yield to Call