TradeAlmanac
Sign in

Yield to put

Yield calculated as if the bond will be bought back on the put date rather than held to maturity.

How to read the number

For an issue with a resettable coupon this is the only honest measure: coupons after the put date have not been announced, so there is nothing to compute them from.

When the metric lies

Screens show yield to maturity on one bond and yield to put on the next. For a bond with a near put date and a token coupon afterwards, the first figure looks attractive and means nothing.

Also known as: ytp, yield to the put date

Related terms