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:![]() |
|
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. |
Related Definitions
Articles Of Interest
-
How To Compare Yields On Different Bonds
Find out how to equalize and compare fixed-income investments with different yield conventions. -
Accelerating Returns With Continuous Compounding
Learn the natural log and exponential functions used to calculate this value. -
Advanced Bond Concepts
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. -
Bond Basics Tutorial
Investing in bonds - What are they, and do they belong in your portfolio? -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Analyzing The Best Retirement Plans And Investment Options
Understanding the various retirement investments - from annuities to 401(k)s and everything in between - is crucial to reaching your retirement goals. Here, we examined many of the popular investments ... -
Zero-Coupon Bond
A zero-coupon bond or ‘no coupon’ bond is one that does not disburse regular interest payments. Instead, the investor buys the bond at a steep discount price; that is, at a price ... -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
Climb The Bond Ladder To Higher Income
Whether it's learning how to ladder bonds or finding alternatives, investors seeking better returns need to be more active. -
Why You Should Invest In Municipal Bond ETFs
These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings.

Free Annual Reports