PT - JOURNAL ARTICLE
AU - Arnold, Tom
AU - Earl, John H.
TI - Adjusting Current Yield to be a Better<br/>Approximation of Yield to Maturity
AID - 10.3905/jwm.2014.17.2.031
DP - 2014 Jul 31
TA - The Journal of Wealth Management
PG - 31--33
VI - 17
IP - 2
4099 - http://jwm.pm-research.com/content/17/2/31.short
4100 - http://jwm.pm-research.com/content/17/2/31.full
AB - 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