A restating of the yield on a debt instrument in terms of semiannual interest,...
The return on a discounted security figured on a basis that permits comparison with interest-bearing securities. For a short-term (under six months) discounted security, the bond equivalent yield is an annualized rate of return. For a longer term discounted security, the bond equivalent yield is determined by a computation that adjusts for the absence of periodic payments over the life of the security. See: DISCOUNTED SECURITY.
The amount of yield an investor must earn from a taxable bond in order to get the same amount of money he or she would earn on a tax-free bond.
An adjustment to a CMO yield to equate it to semiannual interest payments on most other types of bonds.
An adjustment to a CMO yield which reflects its greater present value, created because CMOs pay monthly or quarterly interest, as opposed to semiannual interest payments on most other types of bonds.
A bond quotation convention based on a 365-day year and semiannual coupons. (Contrast with effective annual yield.)
Is the procedure which relates discounted rates such as treasury bills and eurodollars to a bond standard. It is typical for discounted paper to be computed on the basis of a 360-day year whereas bonds are usually based on a 365 day year. If this equivalency is not done then the quoted short-term rates for discounted instruments may be understated.
The calculation which converts the yield of a money market instrument such as a Treasury bill into the equivalent yield of a Treasury bond.
nominal yield on a long term instrument quoted on a 365 day basis
Bond yield calculated on an annual percentage rate method. Differs from annual effective yield.
A discount yield restated to make it directly comparable to an interest bearing investment. See: Discount Yield.
A yield on a money market instrument or pass-through security computed so as to be comparable to a yield computed on a coupon security paying semiannual interest.
The effective yield of semiannual compounding due to the fact that U.S. bonds pay coupons twice a year.
Annual yield on a short-term, non-coupon bearing security calculated in a manner that results in a yield comparable to those quoted on coupon securities.