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Bond Equivalent Yield

   Also found in: Dictionary/thesaurus, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Bond equivalent yield
Bond yield calculated on an annual percentage rate method. Differs from annual effective yield.

Bond Equivalent Yield
The non-annual yield of a bond expressed in annual terms. The bond equivalent yield helps an investor compare the return of a bond that pays a coupon on an annual basis with a bond with semi-annual, quarterly, or any other coupons. It is calculated thusly:

Bond equivalent yield = ((face value - purchase price) / purchase price) * (365 / days until maturity). See also: Annual Percentage Rate.


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Rate: 50 basis points below the bond equivalent yield of the 13 week (90 day) Treasury Bill rate published in The Wall Street Journal each Tuesday.
The interest rate savings of 10 to 25 basis points which were quoted earlier is on a bond equivalent yield basis and takes the more frequent compounding of payments into effect.
Social housing pools provided bond equivalent yields of approximately 10.
 
 
 
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