Estimate of the worst possible return of a bond, calculated as the minimum (in % terms) between the Yield to Maturity and the Yield to Call. It is an important metric assessed in the high yield bond world, where very often bonds are repaid prior to maturity.

See also: Yield to Maturity, Yield to Call

If you would like to learn more about the financing process, please see our Termgrid Primers – Series 1: The Debt Financing Process.