PT  - JOURNAL ARTICLE
AU  - Tom Arnold
AU  - John H. Earl
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  - https://pm-research.com/content/17/2/31.short
4100  - https://pm-research.com/content/17/2/31.full
AB  - Current yield is a common approximation for abond’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