Exchange Currency

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.

Related information about option-adjusted yield:
  1. What is option-adjusted yield? definition and meaning
    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 ...
     
  2. Option Adjusted Yield - What does OAY stand for? Acronyms and ...
    Acronym, Definition. OAY, Option Adjusted Yield. OAY, Oenothera Aster Yellows ( molecular biology). OAY, Outstanding Airman of the Year ...
     
  3. Option-Adjusted Spread
    Most often, the benchmark is Treasuries. To avoid dependency on a particular benchmark, option-adjusted yield may be quoted instead of OAS: ...
     
  4. Option-Adjusted Yield
    The expected yield to maturity of a bond or note after adjusting for the probability- weighted impact of an embedded option, usually an issuer's call provision.
     
  5. What is OPTION-ADJUSTED YIELD? - The Law Dictionary
    Definition of OPTION-ADJUSTED YIELD: The yield of a bond if it held until maturity.
     
  6. Fidelity.com Help - Glossary: O
    Option Adjusted Yield is calculated by adding/(subtracting) the value of a call option/(put option) to the bond's market price to obtain the price of an otherwise ...
     
  7. RMTF - RMM Option Adjusted Spread Definition - Society of Actuaries
    (oay = option-adjusted yield or hurdle rate of return). Considerations when setting the hurdle rate are as follows: the riskiness of the stream of future cash flows, ...
     
  8. Bonds with Embedded Options - Investment Analytics
    Option-Adjusted Yield. ▫ YTM of implied non-callable bond. ▫ Rich-Cheap Analysis of Callable Bonds. ▫ Calculate option-adjusted yield. ▫ Compare to zero ...