Glossary of Municipal Securities Terms


The rate of return to the investor earned from payments of principal and interest, with interest compounded semi-annually at the stated yield, presuming that the security is redeemed on a specified call date (if the security is redeemed at a premium call price, the amount of the premium is also reflected in the yield). Yield to call takes into account the amount of the premium or discount at the time of purchase, if any, and the time value of the investment. Compare: CURRENT YIELD; YIELD TO MATURITY; YIELD TO WORST.

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