GS:-----13 Aug 2016 19:41
No, Lloyds can only redeem them if they wish on a specific " call" date ---- it is around the end of december , i think, in this case !!--
At that time Lloyds , if they wish , will buy them back at the market price at that time ---- BUT if they choose not to " call" them in then the remaining term could be at a much reduced rate / yield as they do not have to continue to 2021 with the current 10.75% yield !!---
I have to factor these types of things in when i buy Bonds at times !!---
By my reckoning still , if you bought them at the current price of 106.25 p ish ( 1000 is minimum tho' i think ) then you will get £107.5 annually for every 1000 Bonds at Par Value ( 100p) ---
That equates to 107.5( yield ) divided by 1062 ( cost of 1000 to buy) x 100 = 10.12 % .or there abouts !!
Your figure of 10.263% is calculated using Mid Price not Buy Price , but near enough , i suppose ---
They may actually be worth a bit of a punt ----- but just remember you may only have till december ( 4 months ) before they are redeemed or offered back at a much lower yield !!--
GL ----