MARKET MATH
Cash Conversion of Yield
Provides a simple approximation translating an annualized yield into period cash income.
Formula
Cash income ≈ Notional × Yield × year fraction
Variables: Notional; yield; accrual fraction
What it means
Provides a simple approximation translating an annualized yield into period cash income.
Example
10m at 4% for 90/360 approximates 100,000 before instrument-specific conventions.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.