Bond Equivalent Yield Calculator (+ Formula)

Enter the face value of a bond, it’s current price, and the days to maturity into the calculator. The calculator will evaluate and display the bond equivalent yield.

Bond Equivalent Yield Formula

The following equation can be used to calculate the bond equivalent yield.

BEY = [(FV – P) / P]* (365/d)

  • Where BEY is the bond equivalent yield
  • FV is the face value
  • P is the current price
  • d is the days to maturity

Bond Equivalent Yield Definition

A bond equivalent yield is a financial metric that is used to calculate the annual percentage yield for securities. This is used to understand the performance of a security when compared with just a typical bond.

Bond Equivalent Yield Example

How to calculate bond equivalent yield?

  1. First, determine the face value.

    Calculate the face value of the bond.

  2. Next, determine the current price.

    Calculate the current price of the bond.

  3. Next, determine the days to maturity.

    Calculate the number of days until the bond matures.

  4. Finally, calculate the BEY.

    Calculate the bond equivalent yield using the formula above.

FAQ

What is a bond equivalent yield?

A bond equivalent yield, or BEY for short, is the annual percentage that a bond yields on average.

bond equivalent yield calculator
bond equivalent yield formula