Tool Slick

Bond Equivalent Yield Calculator

Bond Equivalent Yield Calculator is a tool that helps an investor to evaluate the annual yield of a bond sold on discount

All processing happens on the client-side, locally in your browser. No data is uploaded.

Face value amount
Purchase price amount
Number of days to maturity
Bond Equivalent Yield
48.67

History

  • 2018-06-10Tool Launched

Background

What does Bond Equivalent Yield mean?
The bond equivalent yield formula is used to determine the annual yield on a discount, or the zero coupons, bond. While making investment decisions, comparing the yield or returns on the investment choices in relative terms is important.
Formula
Bond Equivalent Yield = ((Par Value - Price) / Price) * (365 / d) * 100
Example

A bond has a par value of $2,000, purchased at a discounted price of $1,900 and has 100 days to maturity.

According to the formula, Bond Equivalent Yield is:-

  • (($2,000 - $1,900) / $1,900) * (365 / 100) * 100
  • ($100 / $1,900) * 3.65 * 100
  • 0.0526 * 3.65 * 100
  • Bond Equivalent Yield = 19.21%