Yield to Call (YTC)
Yield assuming the bond is called (redeemed early) at a specific call date and price.
YTC is the yield an investor would earn if the issuer exercises its call option — redeeming the bond before maturity at a predetermined price (usually par or a small premium). Calculation: Solve for the discount rate that equates the present value of cash flows up to the call date (plus the call price) to the market price. YTC is lower than YTM when the bond trades at a premium (issuer is incentivized to call). Yield to Worst (YTW) = min(YTM, all YTCs) — the most conservative yield scenario. Bloomberg YAS prominently displays YTW for callable bonds.
Current Yield
Annual coupon income divided by the bond's clean price.
Running Yield
Annual coupon income divided by the bond's dirty price (clean price plus accrued interest).
Yield to Maturity (YTM)
The annualized return if you hold the bond to maturity, assuming all coupons are reinvested at the same rate.
Dirty Price
The total settlement price paid for a bond, including accrued interest.
Clean Price
The quoted bond price excluding accrued interest.
Accrued Interest
Interest that has accumulated since the last coupon payment, paid by the buyer to the seller.