Adjusted current yield

The adjusted current yield is a financial term used in reference to bonds and other fixed-interest securities. It is closely related to the concept of current yield.

The adjusted current yield is given by the current yield with addition of ${\frac {(100-{\text{Clean price}})/{\text{Years to maturity}}}{\text{Clean price}}}*100.$

Here clean price is the clean price of the bond (i.e. present value of the bond with accrued interest subtracted).

Formula for adjusted current yield

In total the adjusted current yield is given by ${\frac {\text{Annual coupon payments}}{\text{Clean price}}}*100+{\frac {(100-{\text{Clean price}})/{\text{Years to maturity}}}{\text{Clean price}}}*100.$

References

Bond market

Bond Debenture Fixed income

Types of bonds by issuer	Agency bond Corporate bond Senior debt Subordinated debt Distressed debt Emerging market debt Government bond Municipal bond

Types of bonds by payout	Accrual bond Auction rate security Callable bond Commercial paper Contingent convertible bond Convertible bond Exchangeable bond Extendible bond Fixed rate bond Floating rate note High-yield debt Inflation-indexed bond Inverse floating rate note Perpetual bond Puttable bond Reverse convertible securities Zero-coupon bond

Bond valuation	Clean price Convexity Coupon Credit spread Current yield Dirty price Duration I-spread Mortgage yield Nominal yield Risk-free bond Yield to maturity Z-spread

Securitized products	Asset-backed security Collateralized debt obligation Collateralized mortgage obligation Commercial mortgage-backed security Mortgage-backed security Yield-curve spread

Bond options	Callable bond Convertible bond Embedded option Exchangeable bond Extendible bond Option-adjusted spread Puttable bond

Institutions	Commercial Mortgage Securities Association (CMSA) International Capital Market Association (ICMA) Securities Industry and Financial Markets Association (SIFMA)

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