Bond Equivalent Yield (BEY)

Because a large number of coupon-paying bonds make their coupon payments semiannually (e.g., US Treasury Notes and Bonds, and many corporate bonds), and each coupon payment is ½ of the annual coupon (i.e., each coupon is calculated as 0.5 × annual coupon rate × par), the default yield convention for bonds is that the annual […]

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