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Meaning / Definition of

Option-adjusted Yield

Categories: Options, Bonds and Treasuries,

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.

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Definition / Meaning of

Loss Payable Clause

Categories: Insurance,

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