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Option-Adjusted Yield
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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
. See also
Call-Adjusted Yield
,
Option-Adjusted Spread (OAS)
. Also called
Non-Callable Bond Equivalent Yield
.
Glossary
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