BOND EQUIVALENT YIELD
\bˈɒnd ɪkwˈɪvələnt jˈiːld], \bˈɒnd ɪkwˈɪvələnt jˈiːld], \b_ˈɒ_n_d ɪ_k_w_ˈɪ_v_ə_l_ə_n_t j_ˈiː_l_d]\
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A measure that converts the YIELD of a FIXED INCOME discount instrument into terms of a standard COUPON instrument, permitting proper comparison of investment alternatives. It is generally computed via: where Face is FACE VALUE, P is purchase price, n, is the number of days in the year following issuance, and nMAT is the number of days until maturity. See also DISCOUNT YIELD, SIMPLE YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.
By Henry Campbell Black
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hydromorphic
- [Greek] Structurally adapted to an aquatic environment, as organs of water plants.