Bond Equivalent Yield - BEY
Definition of 'Bond Equivalent Yield - BEY'A calculation for restating semi-annual, quarterly, or monthly discount-bond or note yields into an annual yield. For a fixed income security with a par value of $1000, the calculation is as follows:![]() |
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Investopedia explains 'Bond Equivalent Yield - BEY'The BEY allows fixed-income securities whose payments are not annual to be compared with securities with annual yields. The BEY is the yield that is quoted in newspapers.Alternatively, if the semi-annual or quarterly yield to maturity of a bond is known, the APR calculation may be used. |
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