Fixed Income
Yield to Worst
Definition
What is Yield to Worst?
The lowest yield among specified redemptionThe process of selling fund units back to the fund in exchange for cash. scenarios that do not assume issuer default.
Example in practice
How This Looks in Practice
A callable bondA bond the issuer may redeem before maturity under specified terms.'s yield to worst may be its yield to the earliest call date.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.