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:


Bond Equivalent Yield (BEY)

BREAKING DOWN '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.

  1. Par

    Short for "par value," par can refer to bonds, preferred stock, ...
  2. Yield To Maturity (YTM)

    The total return anticipated on a bond if the bond is held until ...
  3. Discount Bond

    A bond that is issued for less than its par (or face) value, ...
  4. Par Value

    The face value of a bond. Par value for a share refers to the ...
  5. Yield

    The income return on an investment. This refers to the interest ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), ...
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