When a callable T-bond is selling at a premium, the reported yield is which one of the following?

Question

Quizplus · Accepted Answer

When a callable T-bond is selling at a premium, the reported yield is the yield-to-call. This is because the issuer has the option to call the bond before maturity, which means the bond may not reach its full yield-to-maturity. Therefore, the yield-to-call is a more accurate representation of the yield an investor can expect.

When a Callable T-Bond Is Selling at a Premium, the Reported