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What is Yield and how is it calculated?
What is Yield and how is it calculated?
Updated over a week ago

Yield to Worst is used to represent the lowest potential yield an investor can expect from a bond assuming the issuer does not default assuming a given purchase price. It accounts for any other provisions that may affect the bond's yield, including getting called, put, or converted.

Yield to worst is a measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting.

Yields are quoted on an annualized basis. This means the yield that is displayed in the app reflects what the yield would be if the bond owned was held for an entire year.

Yield to worst rate is made up of many factors such as market conditions, supply and demand, inflation expectations, time to maturity, credit quality of the bond, and Federal funds rate. All this information is taken into consideration when our bond data partner, 'Moment' provides the yield to worst.

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