Bond equivalent yield

(redirected from Money Market Yields)

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.
References in periodicals archive ?
Structured products offering capital protection and enhanced yield, to compensate for low money market yields, are enjoying an under-writing bull market.
Over the course of 2010, money market yields declined 38% to 0.
Institutional profit-taking continued on economic uncertainty, security concerns in the country and rise in money market yields.
Something had to be done unless the life companies wanted to be left with only term insurance to sell in circumstances where customers were creating their own "permanent life insurance" by combining the high money market yields with term policies.
First, low short interest rates and bond yields have encouraged cheap borrowing and enabled private equity specialists to leverage themselves up and to purchase companies on valuations that exploit the difference between money market yields and earnings yields.
In the City, where short-term money market yields moved sharply higher, the debate centred largely on the timing of any upward move.
Under the current low interest-rate environment, managing 10 billion yen overnight in the call money market yields only 200 yen, according to the officials.
The sheer weight of liquidity pumped into stocks, low money market yields, share buy-backs, corporate restructuring, mega-mergers and strong earnings are underpinning equities.
In the intermediate term, M2 velocity--nominal income divided by the stock of M2--tended to vary directly with the difference between money market yields and the return on M2 assets--that is, with its short-term opportunity cost.
The first generation product to obtain acceptance was adjustable rate preferred stock, a security with a dividend rate that is adjusted quarterly to reflect changes in money market yields.
Tired of money market yields but afraid to relinquish security?
taking into account two years of forgone compensation, tuition and required fees); adjusted for cost of living expenses; and discounted their earnings gains using a rate tied to money market yields.