Bond Equivalent Yield

Most bonds are semi-annual coupon paying bonds, so we calculate the semi-annual yield (EAY½-1) and then multiply by 2 to get the bond-equivalent yield.

Semi-Annual Yield = EAY½-1

Bond Equivalent Yield = Semi-Annual Yield x 2

Note: Under corporate finance BEY = Discount/Price x 365/t

Compare: Bank Discount Yield, Holding Period Yield, Money Market Yield, Effective Annual Yield

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