Answer:
yield to call.
Step-by-step explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
If a municipal bond, callable at par, is quoted on a yield basis that is lower than the nominal yield, the price of the bond to a customer would be calculated based on yield to call.
In terms of public offerings of bonds, an indenture is a formal contract that specifies a firm's obligations to the bondholders. It is typically a legal and binding contract between a firm (bond issuer) and its bondholders, which provides detailed information on terms and clauses.
The indenture specifies the essential features of a bond, these includes callabilty of bonds, interest payments time, maturity date of the bond, interest calculation method etc.