What is a Bond Equivalent Yield?
Because the cash flow is paid semi-annually, in the investment field, it is customary to calculate the annual maturity rate by multiplying the half-year maturity rate by two. This type of maturity rate is also called a bond. Equivalent yield.
Bond equivalent yield
Right!
- Because the cash flow is paid semi-annually, in the investment field, it is customary to calculate the annual maturity rate by multiplying the half-year maturity rate by two. This type of maturity rate is also called a bond. Equivalent yield.