Adjusted current yield
Adjusted current yield is a way of measuring how much money you can make from an investment in a particular type of bond.
Let's say you have some money and you want to invest it in a bond. A bond is like a loan - you lend money to a company or government, and they promise to pay you back with interest after a certain amount of time.
The adjusted current yield takes into account all the different factors that can affect how much money you will make on your investment. This includes things like the bond's interest rate, the length of time until it matures, and any fees or taxes associated with the bond.
For example, if you invest $1000 in a bond with an interest rate of 3%, that means you will earn $30 per year in interest. But if the bond has other fees or taxes associated with it, that can reduce the amount of money you actually make. The adjusted current yield helps you calculate how much money you can expect to make after all these factors have been taken into account.
So in simpler terms, adjusted current yield is a way of figuring out how much money you will make from a bond, considering all the different things that might impact your earnings.
Let's say you have some money and you want to invest it in a bond. A bond is like a loan - you lend money to a company or government, and they promise to pay you back with interest after a certain amount of time.
The adjusted current yield takes into account all the different factors that can affect how much money you will make on your investment. This includes things like the bond's interest rate, the length of time until it matures, and any fees or taxes associated with the bond.
For example, if you invest $1000 in a bond with an interest rate of 3%, that means you will earn $30 per year in interest. But if the bond has other fees or taxes associated with it, that can reduce the amount of money you actually make. The adjusted current yield helps you calculate how much money you can expect to make after all these factors have been taken into account.
So in simpler terms, adjusted current yield is a way of figuring out how much money you will make from a bond, considering all the different things that might impact your earnings.