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 - Tom Arnold AU - John H. Earl Y1 - 2014/07/31 UR - https://pm-research.com/content/17/2/31.abstract N2 - 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 ER -