Coupon Equivalent Yield - CEY

What Does Coupon Equivalent Yield - CEY Mean?
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
Coupon Equivalent Yield (CEY)

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 Terms

At Par
Bond
Coupon
Coupon Bond
Discount
Discount Bond
Interest
Time Value of Money
Yield
More Related Terms

Related Links

Bond Basics Tutorial - Investing in bonds - What are they, and do they belong in your portfolio?
Advanced Bond Concepts - Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.

Rate this Term: Your Rating: Overall Rating: Vote Now!