Yield and Dollar Price Calculations
Whether a bond is quoted on a yield or dollar basis, trade confirmations must indicate both yield and dollar price. If quoted on a yield basis, the dollar price must be calculated in order to complete the confirmation. Yield must be calculated for a dollar bond. The calculated yield will generally be yield to maturity, except for callable bonds that are selling at a premium (in which case yield to call will be used) and putable bonds that are selling at a discount (in which case yield to put will be used).
A yield listed on a trade confirmation will typically be the same yield that was quoted to the customer. Yield disclosure is not required for bonds sold at par, since the yield to