Annualize the yield of a discount security on a simple-interest basis.
Please do not make financial decisions based on these results.
What is the Bond Equivalent Yield Calculator?
Annualize the yield of a discount security on a simple-interest basis. To use the Bond Equivalent Yield Calculator, enter face value, price, days to maturity; it returns bond equivalent yield, discount yield, and shows them instantly as you type.
Pricing bonds and testing credit
Price a bond with the Bond Price Calculator, solve for yield with the Bond YTM Calculator and measure rate risk with convexity and duration. If the bond is callable, compare yield to maturity with the yield to call.
On the credit side, combine Debt to Equity Calculator, interest coverage and the Altman Z-score. Together they show leverage, ability to pay and the odds of distress.
- Yields. Current yield, YTM, yield to call and bond-equivalent yield answer different questions.
- Coverage. DSCR, times interest earned and cash flow to debt show repayment capacity.
- Loss. LGD and credit spread translate risk into expected loss and extra yield.
How to use the Bond Equivalent Yield Calculator
- Enter your numbers. Start with Face value ($), Price ($), Days to maturity. Take the price, coupon and maturity from the bond’s listing. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Bond equivalent yield, and the cards below show Discount yield. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Bond Equivalent Yield Calculator using the default values shown in the calculator above:
Inputs
| Face value ($) | 10,000 |
|---|---|
| Price ($) | 9,800 |
| Days to maturity | 182 |
Results
| Bond equivalent yield | 4.09% |
|---|---|
| Discount yield | 3.96% |
With these inputs the calculator returns Bond equivalent yield: 4.09%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Face value ($) from 10,000 to 12,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Bond equivalent yield | 4.09% | 45.02% | +1000% |
| Discount yield | 3.96% | 36.26% | +816.7% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Bond Equivalent Yield Calculator reports Bond equivalent yield and discount yield. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Where is BEY used?
To compare Treasury bills and other discount instruments with coupon bonds.
How are bond prices calculated?
The price is the present value of every coupon plus the face value, discounted at the market yield.
What do solvency ratios tell me?
Ratios such as debt to equity, interest coverage and the Altman Z-score show how safely a company can meet its debts.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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- Effective Duration Calculator
- Credit Spread Calculator
- After-tax Cost of Debt Calculator
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