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Bond equivalent yield

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Bond equivalent yield - some related terms:
Discount yield
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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.

The bond equivalent yield is essentially a restating of the yield on a debt instrument, taking into consideration several factors that are involved regarding the interest on the asset.

Bond equivalent yield
An adjustment to yield on a note which has monthly or quarterly interest payments.

Bond Equivalent Yield
The yield of a security assuming semi-annual compounding. This is used to compare securities that have different coupon conventions such as U.S. treasury bills and mortgage-backed securities.
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Bond Equivalent Yield: Annual yield on a short term, non-interest bearing security calculated so as to be comparable to yields of interest-bearing securities.

BOND EQUIVALENT YIELD - The return on a discounted security figured on a basis that permits comparison with interest-bearing securities.

Bond equivalent yield
Bond yield calculated on an annual percentage rate method. Differs from annual effective yield.

Bond Equivalent Yield: A bond equivalent yield is a calculation that relates discounted rates (e.g., the rates for Treasury bills and agency discount notes) to a bond standard.

bond equivalent yield
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Net Yield (in banking)
Bond Equivalent Yield (in banking)
Auction Market (in banking)
Basis Point (finance term) ...

bond equivalent yield A restating of the yield on a debt instrument in terms of semiannual interest,... bond fund A mutual fund which invests in bonds, Commonly with the objective of providing...

The bond equivalent yield is equal to a bill's discount, expressed as a fraction of the purchase price multiplied by 365 divided by the number of days to maturity.

See also: Yield, Income, Investment, Bond, Maturity