Glossary of Municipal Securities Terms

YIELD TO PUT OPTION OR YIELD TO PUT

The rate of return to the investor, presuming that the security is put back to the issuer or its agent (or a third party) by the investor on a specified date in accordance with the terms of a put option granted by the issuer (or the third party). The investment return reflected in the yield consists of the return of the principal (or the portion of the principal amount payable upon the exercise of the put) and payment of the interest (with the interest compounded semi-annually) to the put date. Compare: YIELD TO CALL

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