Encyclopedia

Adjusted current yield

Wikipedia contributorsAdapted for Fathomly · View authors

1 min read
Source updated July 21, 2026

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 ${\frac {({\text{Face value}}-{\text{Clean price}})/{\text{Years to maturity}}}{\text{Clean price}}}\cdot 100\%.$

Here Face value is the face value of the bond, and Clean price is the clean price of the bond (i.e. present value of the bond with accrued interest subtracted).

01Formula for adjusted current yield

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

Watch videos about Adjusted current yieldExplainers and documentaries on YouTube (opens in a new tab)

Sources and credits

This article is adapted from the Wikipedia article “Adjusted current yield”, written by its contributors and licensed under CC BY-SA 4.0. Fathomly has changed the layout, removed citation markers, navigation and maintenance notices, and adjusted punctuation. This adapted version is shared under the same license. For references, see the original article.

Fathomly is not affiliated with or endorsed by the Wikimedia Foundation. Spotted a problem? Tell us.