Simple Yield
Approximate yield that assumes straight-line amortization of premium/discount — no compounding.
Simple yield (also called Japanese yield) is a quick approximation: (Annual Coupon + Annual Amortization) ÷ Clean Price. It ignores compounding and reinvestment, so it's less accurate than YTM but useful for quick mental math. For a par bond, simple yield equals the coupon rate. For discount bonds, simple yield > YTM (amortization is spread too evenly). For premium bonds, simple yield < YTM. Think of it as back-of-the-envelope yield — good for sanity checks but not pricing.
Formula