Bond Equivalent Yield

Annualize discount bond returns for comparison with coupon bonds.

Last updated: 2026-04-02

Face value ($)

Purchase price ($)

Days to maturity

Bond equivalent yield

4.138%

Discount: 2.000% • Gain: $20.00

About

Converts discount bond returns into an annualized yield for easy comparison with coupon-bearing bonds.

Example: $1,000 face, $980 purchase, 180 days → BEY shown above.

So short-dated discounts can be compared to coupon bonds.

This is a simple BEY based on actual days.

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