Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,894,985,290 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Equivalent Bond Yield

    0.01 sec.
Equivalent bond yield
Effective annual yield on a short-term, noninterest-bearing security calculated for comparison to yields quoted on coupon securities.

Equivalent Bond Yield
An alternative method of calculating the yield on a bond. It is used for zero-coupon bonds, as these are issued at discounts to their face value, that is, the equivalent bond yield states what the yield would be if it carried a coupon and had been sold at face value. As such, it provides a more accurate picture of the yield of a zero-coupon bond. See also: Coupon-equivalent rate.

equivalent bond yield
The annual yield on a short-term security that is usually quoted on a bank-discount basis to make the yield comparable with quotations on other interest-bearing debt.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?   Financial browser?   Full browser?
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.