equivalent bond yield(redirected from Equivalent Bond Yields)
Equivalent bond yield
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.