|
Bond Equivalent Yield (BEY)
A Treasury bill or other discount instrument's yield over its life, assuming it is purchased at the asked price and the return is annualized using a simple interest approach. Bond equivalent yield is equal to the bill's discount expressed as a fraction of the purchase price multiplied by 365 divided by the number of days to maturity. BEY = (discount / purchase price) * (365 / days to maturity)
|
