Series 50: Yield To Average Life

Taken from our Series 50 Online Guide

Yield to Average Life

Bonds that have a sinking fund agreement require the issuer to set funds aside sufficient to redeem the issue prior to maturity. Often a set percentage of the issue is required to be retired each year. Yield to average life is the yield calculation for sinking fund bonds to substitute for yield to maturity when the bonds are trading below par.

The average life of a sinking fund bond

Since you're reading about Series 50: Yield To Average Life, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 50
Please Enable Javascript
to view this content!