Bond Equivalent Yield (BEY)
The BEY is a formula that allows investors to calculate the annual yield from a bond being sold at a discount. It is useful to compare investment opportunities that may have different discount prices and days to maturity. The BEY is calculated first by subtracting the discount price from the face value and dividing the result by the discount price. That is multiplied by [365 days divided by days to maturity] and converted to a percentage.