Coupon Equivalent Yield - CEY
Definition of 'Coupon Equivalent Yield - CEY'A method of calculation used to calculate the yield on bonds with maturities of less than one year and which normally sell at a discount and do not pay coupons.Formula ![]() |
|
Investopedia explains 'Coupon Equivalent Yield - CEY'For example, the CEY calculation allows bond investors to compare the return on a 180-day Treasury bill to a one-year coupon paying bond, to evaluate which instrument will give the investor a higher return. |
Related Definitions
Articles Of Interest
-
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? -
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. -
6 Popular ETF Types For Your Portfolio
Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods. -
Guide To Embedded Options In Bonds
Investors should be aware of embedded options that may be available in certain securities as these options may affect the value of the security. -
Top 5 Budgeting Questions Answered
You don't need a degree to understand your money, begin saving and pay down debt. -
Helping Parents Advise Underage Investors
This article looks at options for teenagers to prepare for their financial futures. -
Investment Choices For Wealthy People
Here is an overview of some investment vehicles that are available to wealthy investors. -
Asset Allocation: The First Step Toward Profit
Understanding the different asset classes is an essential part of portfolio diversification.

Free Annual Reports