YTC and YTM

Makavelim3

For a premium bond, YTC<YTM, bond is callable in 5 years at par and matures in 10 years. Should YTC be considered in purchase decision or YTM? Answer to the question I was looking at was YTC as YTC<YTM. If you are getting better yield for holding it, wouldn't you wait till maturity and get a better yield? How does these scenarios affect to other bonds like d/c?

disiz64

if you buy a callable bond, you don't have control over the company's decision on whether or not to call it.

So you'd look at the YTC because that's the only period that you're guaranteed to have ownership of the bond for.