What is a '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:
Â
Â
Next Up
BREAKING DOWN '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

Bond Yield
The amount of return an investor will realize on a bond. Several ... 
Running Yield
The annual income on an investment divided by its current market ... 
Semiannual
A semiannual event happens twice a year, typically every six ... 
Discount Yield
Discount yield is a measure of a bond's percentage return. Discount ... 
Yield
The income return on an investment. This refers to the interest ... 
Yield To Maturity (YTM)
The total return anticipated on a bond if the bond is held until ...
Related Articles

Forex Education
How To Compare Yields On Different Bonds
Find out how to equalize and compare fixedincome investments with different yield conventions. 
Professionals
Typical Yield Measures
CFA Level 1  Typical Yield Measures. Learn the various measures of yield on a bond. Includes yield to first call, first par call, put, refunding and yield to maturity. 
Bonds & Fixed Income
Advanced Bond Concepts: Yield and Bond Price
In the last section of this tutorial, we touched on the concept of required yield. In this section we'll explain what this means and take a closer look into how various yields are calculated. ... 
Professionals
Bond Yields
A bond’s yield is the investor’s return for holding the bond. Many factors affect the yield that an investor will receive from a bond such as: Current interest rates Term of the bond ... 
Professionals
Yield To Maturity
A bond’s yield to maturity is the investor’s total annualized return for investing in the bond. A bond’s yield to maturity takes into consideration the annual income received ... 
Professionals
Yield Terms
FINRA Series 6 Exam Study Guide  Yield Terms. This section distinguishes three types of yield calculations for bonds. 
Professionals
Calculating Yields
When an investor purchases a bond in the secondary market at a discount, the discount must be accreted over the remaining life of the bond. The accretion of the discount will result in a higher ... 
Investing
Understanding the Different Types of Bond Yields
Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment. 
Retirement
Bond Basics: Yield, Price And Other Confusion
Investopedia Explains: Bond yield, Bond price, yield to maturity, the link between price and yield and bond price in the market. 
Bonds & Fixed Income
4 Types Of Money Market Yields
We give you four equations to help figure out the yields on your investments.
RELATED FAQS

What is the difference between the yield of stock and the yield of a bond?
Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond ... Read Answer >> 
What is the relationship between current yield and yield to maturity (YTM)?
Learn about the relationship between a bond's current yield and its yield to maturity, including how the market price of ... Read Answer >> 
If I buy a $1,000 bond with a coupon of 10% and a maturity in 10 years, will I receive ...
Simply put: yes, you will. The beauty of a fixedincome security is that the investor can expect to receive a certain amount ... Read Answer >> 
Can I use the current yield to compare a bond to an equity investment?
Learn about the different types of yield measurements for stocks and bonds, and find out how to make careful comparisons ... Read Answer >> 
What does a negative bond yield mean?
Find out what it means when a bond has a negative yield and what circumstances must arise for the yield to be negative when ... Read Answer >> 
What is the difference between yield to maturity and the yield to call?
Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing ... Read Answer >>