Bond yield quick approximation formula (ID: 124) [Edit]
Description of the Bond yield quick approximation formula
Formula for a quick approximation of a bond's yield. The closer the bond is to maturity, the more precise the result.
Formula
\[ r = I + \frac{\left(R-P \right)}{N} \ \]
Symbols
\(I\ \)
Nominal coupon rate
\(N\ \)
Number of periods (years)
\(P\ \)
Bond clean price
\(R\ \)
Bond redemption price
Additional information related to this formula
Related definitions from the glossary of financial terms
Bond • Clean price • Coupon • Yield