Yield to worst %

Yield to worst % is the lowest possible annual yield an investor can expect, assuming the issuer does not default. It accounts for all potential early redemption options and reflects the least favorable outcome for the investor. This yield is determined by comparing the Yield to call, Yield to put, and Yield to maturity and selecting the lowest value.

The formula is:

Yield to worst = Minimum(Yield to call, Yield to put, Yield to maturity)

This means Yield to worst is the smallest value among:

• Yield to call: The expected annual return if the bond is redeemed on the next call date.
• Yield to put: The expected annual return if the bondholder exercises the put option on the next put date.
• Yield to maturity: The expected annual return if the bond is held until its maturity date.