DEFINITION of 'SemiAnnual Bond Basis  SABB'
A conversion metric to compare rates on bonds with varying characteristics. Since bonds come with all types of coupon rates and payment frequencies, it's important to be able to find some common measure to compare different types of bonds sidebyside. By using a semiannual bond basis (SABB), the interest rate of a bond that pays other than semiannually is converted into its semiannual equivalent.
BREAKING DOWN 'SemiAnnual Bond Basis  SABB'
When considering the purchase of a bond from a brokerage, be sure to ask for the interest rate to be quoted on a semiannual bond basis. If they are unable to provide this computation for you and you plan on investing in bonds on a regular basis, you should consider investing in a financial calculator or computer program that can assist you in this calculation.

Bond
A debt investment in which an investor loans money to an entity ... 
Semiannual
A semiannual event happens twice a year, typically every six ... 
Discount Bond
A bond that is issued for less than its par (or face) value, ... 
Coupon Bond
A debt obligation with coupons attached that represent semiannual ... 
Bond Equivalent Yield  BEY
A calculation for restating semiannual, quarterly, or monthly ... 
Bond Option
An option contract in which the underlying asset is a bond. Other ...

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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 >> 
How does the money from the interest on my bond get to me?
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What are the key factors that will cause a bond to trade as a premium bond?
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Do longterm bonds have a greater interest rate risk than shortterm bonds?
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