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Bond Equivalent Yield - BEY
What does it mean?
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:
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In Other Words...
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 Links
Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.
Related Terms
Annual Percentage Rate - APR | Bond | Discount Bond | Discount Note | Fixed-Income Security | Par | Par Value | Yield | Yield to Maturity
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A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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