Some fixed-income securities contain an embedded call option. As a result, the issuer has the right to buy back the bond before the stated maturity date. Put simply, the issuer might repay the debt earlier. The yield to worst (YTW) represents the minimum return received on a callable bond, apart from the company defaulting. As part of worst-case scenario planning, bondholders often calculate the yield assuming the bond is redeemed by the issuer at the earliest possible date.
This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.
Yield To Worst (YTW) is among the topics included in the Fixed Income module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Fixed Income Investments course.
You can also explore other related templates such as—Yield to Call, Bond Valuation, and Yield to Maturity.