TY - JOUR
T1 - Adjusting Current Yield to be a Better<br/>Approximation of Yield to Maturity
JF - The Journal of Wealth Management
SP - 31
LP - 33
DO - 10.3905/jwm.2014.17.2.031
VL - 17
IS - 2
AU - Arnold, Tom
AU - Earl, John H.
Y1 - 2014/07/31
UR - http://jwm.pm-research.com/content/17/2/31.abstract
N2 - Current yield is a common approximation for abondâ€™s yield to maturity. The approximation becomes less accurate as the bond price moves away from par value. By performing a relatively easy calculation that incorporates an annuity calculation with the coupon rate, an adjustment to current yield can be generated that is a much better approximation of the actual yield to maturity.TOPICS: Fixed income and structured finance, performance measurement
ER -