Bond Equivalent Yield Calculator

Your details

Choose whether you know the bond price and face value, or whether you want to convert a bank discount rate to BEY.
The principal amount paid to you at maturity.
USD
The price you paid (or will pay) for the security. Must be less than face value for a discount bond.
USD
Number of calendar days from settlement to maturity. Common T-bill maturities are 91, 182, and 364 days.
days
Bond Equivalent YieldModerate yield
4.0928%

Annualized yield on a 365-day basis, the standard for comparing discount securities to coupon bonds.

Effective Annual Yield0.0413%
Holding-Period Return0.0204%
Profit at maturity200USD
4.0928% %
Very low<1%Low1%-3%Moderate3%-5%Attractive5%-8%High yield8%+

Bond Equivalent Yield: 4.0928%

  • You earn $200.00 on a $9800.00 investment - a holding-period return of 2.0408% over 182 days.
  • The effective annual yield (compounded) is 4.1348%, slightly above BEY because of compounding across periods.
  • The security is priced at a 2.0000% discount to its $10,000 face value.

Next stepBEY is a simple annualization and does not compound intra-year. For securities longer than one year, effective annual yield (EAY) gives a more accurate picture. Always compare BEY to other instruments on the same yield basis.

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