DEFINITION of 'Bond Equivalent Yield  BEY'
A calculation for restating semiannual, quarterly, or monthly discountbond or note yields into an annual yield. For a fixed income security with a par value of $1000, the calculation is as follows:
INVESTOPEDIA EXPLAINS 'Bond Equivalent Yield  BEY'
The BEY allows fixedincome 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 semiannual or quarterly yield to maturity of a bond is known, the APR calculation may be used.
RELATED TERMS

Par Value
The face value of a bond. Par value for a share refers to the ... 
Yield To Maturity (YTM)
The rate of return anticipated on a bond if held until the maturity ... 
Discount Note
A shortterm debt obligation issued at a discount to par. Discount ... 
Bunny Bond
A type of bond that offers investors the option to reinvest coupon ... 
SEC Yield
A standard yield calculation developed by the Securities and ... 
Stripped Yield
A measure of the noncollateralized, independent return of a ...
RELATED FAQS

What is the relationship between the current yield and risk?
The general relationship between current yield and risk is that they increase in correlation to one another. A higher current ... Read Full Answer >> 
How does the bond market react to changes in the Federal Funds Rate?
The bond market is highly sensitive to changes in the federal funds rate. When the Federal Reserve increases the federal ... Read Full Answer >> 
How do I use the holding period return yield to evaluate my bond portfolio?
The holding period return yield formula can be used to compare the yields of different bonds in your portfolio over a given ... Read Full Answer >> 
What is the relationship between current yield and yield to maturity (YTM)?
Both the current yield and yield to maturity (YTM) formulas are methods of calculating the yield of a bond. However, these ... Read Full Answer >> 
What is a 'busted' convertible bond?
In finance, a convertible bond represents a hybrid security that offers debt and equity features and risks. While a convertible ... Read Full Answer >> 
How can I use the holding period return yield to determine whether or not I should ...
Use the holding period return yield formula to determine whether the time is right to sell your bond. With this calculation, ... Read Full Answer >>
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