@article {Arnold31, author = {Tom Arnold and John H. Earl}, title = {Adjusting Current Yield to be a BetterApproximation of Yield to Maturity}, volume = {17}, number = {2}, pages = {31--33}, year = {2014}, doi = {10.3905/jwm.2014.17.2.031}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Current yield is a common approximation for abond{\textquoteright}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}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/17/2/31}, eprint = {https://jwm.pm-research.com/content/17/2/31.full.pdf}, journal = {The Journal of Wealth Management} }