- Minimum Yield
The lesser of a bond's yield-to-call and yield-to-maturity. The minimum yield is used by investors who want to determine a conservative estimate for the value of a particular bond. A bond's yield-to-call and yield-to-maturity will change according to market conditions, though its yield-to-call will always adjust faster. If the current price of a bond is below the call price, the bond's yield-to-maturity will be its minimum yield.
Because a bond's yield-to-maturity will move up and down faster than its yield-to-call, investors will see a crossover point. The point at which the two yields are equal is called the crossover price. For example, a bond that has been falling in price but sees the price start to increase will have a yield-to-maturity (it's minimum yield in this case) that shifts directions, making the yield-to-call the minimum yield.
Investment dictionary. Academic. 2012.