Option-Adjusted Yield

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Definition: Option-Adjusted Yield

Option-Adjusted Yield
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Full Definition of Option-Adjusted Yield

The yield to maturity of a bond with an embedded option, such as a convertible bond. The option-adjusted yield is calculated by removing the effect of the option from the yield, which provides the yield that discounts the cash flows of a non-callable bond.

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https://payrollheaven.com/define/option-adjusted-yield/
Modern Language Association (MLA):
Option-Adjusted Yield. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 04, 2025 https://payrollheaven.com/define/option-adjusted-yield/.
Chicago Manual of Style (CMS):
Option-Adjusted Yield. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/option-adjusted-yield/ (accessed: February 04, 2025).
American Psychological Association (APA):
Option-Adjusted Yield. PayrollHeaven.com. Retrieved February 04, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/option-adjusted-yield/

Definition Sources

Definitions for Option-Adjusted Yield are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.