7.17% is their yield to call (ytc). A bondholder will earn a return if they hang onto the bond until the call date, which happens before it matures, according to the financial term yield to call (YTC).
Yield to call
RATE (NPER,PMT,-PV,FV)x2
= 7.17%
=RATE (7,105,-1240,1100)×1
The return a bondholder obtains if they keep the securities until the call date, which is before the date of maturity, is referred to as "yield to call."
Callable bonds, which are securities that enable bond holders to redeem their bonds early at the call price (or for the bond issuer to repurchase them), are subject to yield to call.
Utilizing computer tools, yield to call can be mathematically determined.
This figure is the compound interest rate at which the present value of a bond's future coupon payments and call price equals the bond's current market price.
Yield to call refers to callable bonds, which are debt instruments that permit bondholders to repurchase bonds from bondholders at a price known as the call price on a date known as the call date. By definition, a bond's call date comes first in the timeline, then it matures.
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