30-day Yield - Bond Fund Yield Calculation

Bond Fund Yield Calculation

The SEC yield calculation for a bond fund is essentially a yield to maturity for the bond portfolio. Because bond funds trade actively and prices fluctuate, the rate may not be a good indicator of future results. However, because the calculation is standardized, it provides a good comparison measure for funds.

The formula for SEC 30-day yield is

Where:

  • a = dividends and interest
  • b = accrued expenses
  • c = average daily number of outstanding shares that were entitled to distributions
  • d = the maximum public offering price per share on the last day of the period

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