Equivalent Yield
Pro-rated annual interest rate paid by a short-term bond, expressed as a percentage of its current market price.
(In other words, it's the same as current yield, but for bonds that reach maturity in less than a year).
Tax-equivalent yield
Definition: [crh] The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a Definition: municipal bond.
Bond-equivalent yield
The annualized yield to maturity computed by doubling the semiannual yield.
Similar financial terms
Bond-equivalent basis
The method used for computing the bond-equivalent yield.
Bond Equivalent Yield
Bond Equivalent Yield definition :
Bond yield calculated on an annual percentage rate method. Differs from annual effective yield.
TSCTrade.com ...
The bond equivalent yield or BEY for an investment is a calculated annual yield for an investment, which may not pay out yearly. It is not to be confused with a bond's coupon rate.
tax-equivalent yield
The pretax yield a taxable bond would have to pay to be an equivalent investment to a similar bond whose interest is tax-exempt.
bond-equivalent yield
In the money market, discount instruments are generally quoted with discount yields, which are not directly comparable with yields calculated for other types of instruments.
bond equivalent yield
investment yield of a bond purchased at discount from face value, such as a U.S. Treasury bill or municipal bond, expressed as a percent.
bond equivalent yield - Related Articles
Bond Yield
Calculations
Bonds can tie up investors' money for periods of up to 30 years, so knowing their yield is a critical investment consideration.
Coupon equivalent yield
Definition 1.
True interest cost expressed on the basis of a 365-day year.
Tax-equivalent yield
The pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond.
Tax selling ...
bond equivalent yield
An annual yield, expressed as a percentage, describing the return provided to bond holders. A bond equivalent yield is double the simple interest, semiannual yield.
Bond equivalent yield
Bond yield calculated on an annual percentage rate method.
Bond indenture ...
bond equivalent yield: The effective yield of semiannual compounding due to the fact that U.S. bonds pay coupons twice a year.
BOND EQUIVALENT YIELD " A discount yield restated to make it directly comparable to an interest bearing investment. See: Discount Yield.
BOND INVESTOR GUARANTY CO (BIGI) " See: Insured bonds.
Coupon equivalent yield
True interest cost expressed on the basis of a 365-day year.
Taxable Equivalent Yield - A yield an investor would be required to earn from a taxable security to equal the value of a tax-exempt security of the same credit quality.
TAXABLE EQUIVALENT YIELD: A method for comparing the after tax returns on taxable and tax-exempt investments.
TEMPORARY ANNUITY: A life annuity that expires after a given period of time.
Taxable Equivalent Yield
The yield an investor would have to obtain on a taxable corporate or U.S. government bond to match the same after-tax yield on a municipal bond.
Tax-Equivalent Yield
The pretax yield that a taxable bond needs to possess for its yield to be equal to that of a tax-free municipal bond.
Bond Equivalent Yield - Is the procedure which relates discounted rates such as treasury bills and eurodollars to a bond standard.
Taxable-Equivalent Yield,
Yield To Call, and
Yield to Maturity.
YIELD TO CALL A financial ratio that measures the rate of return on a callable bond.
Taxable-equivalent yield: The calculation of yield on a federal-tax-free investment so that it can be compared to a taxable investment.
TAXABLE EQUIVALENT YIELD The yield that would have to be earned on a security to pay as much, after tax, as what is earned from a tax-exempt bond.
T-BILL (Treasury Bill) A fixed-income security issued by the U.S. Government.
BEY - See Bond Equivalent Yield.
BF - The two-character ISO 3166 country code for BURKINA FASO.
BG - The two-character ISO 3166 country code for BULGARIA.
tax equivalent yield The pretax yield that an investment needs to have in order to provide the yield... tax evasion Not paying taxes, failing to report, or reporting inaccurately. Tax evasion...
taxable equivalent yield The interest rate that must be received on a taxable security to provide the holder the same after-tax return as that earned on a tax-exempt security.
A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares.
Taxable equivalent yield ...
[EPA] bond-equivalent basis The method used for computing the bond-equivalent yield.
Corporate equivalent yield A comparison of the after-tax yield of government bonds selling at a discount and corporate bonds selling at par. Corporate finance One of the three areas of the discipline of finance.
If the current Estimated Rental Value (ERV) and the passing income are known, as well as the market-determined equivalent yield, then the property value can be determined by means of a simple model.
To calculate the tax equivalent yield of a tax-exempt bond for investors in different tax brackets, the tax-exempt yield is divided by the reciprocal of the tax bracket (e.g., 100% less 28%).
The method used for computing the bond-equivalent yield.
Cash flow
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Sometimes called cash earnings.
SABE Yield: Semi-Annual Bond Equivalent Yield; a method of converting yields and other measures of value in order to place them on a comparable basis. This method assumes interest is reinvested semi-annually.
(1) The rate at which a bank discounts notes. A rate quoted on a discount basis understates bond equivalent yield. This difference must be calculated when comparing the return on yields on a discount basis and equivalent coupon securities.
Money market yield
A bond quotation convention based on a 360-day year and semiannual coupons. See: Bond equivalent yield.
taxable yield and assuming similar credit risk, a taxable bond would need to yield more than 7.66% or more to provide a better return than a tax-free bond yielding 5%. The equivalent taxable yield is also called the taxable equivalent yield ...
See: Bond equivalent yield. Money purchase plan A defined benefit contribution plan in which the participant contributes some part and the firm contributes at the same or a different rate. Also called an individual account plan.
 See also: Bond equivalent yield, Banks, Convertible Bond, Expense, Bills
  
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