AstroDunia

  What Is the Bond Equivalent Yield? In financial terms, the bond equivalent yield (BEY) may be a metric that lets investors calculate the annual percentage yield for fixed-come securities, albeit they're discounted short-term plays that only disburse on a monthly, quarterly, or semi-annual basis. However, by having BEY figures at their fingertips, investors can compare the performance of those investments with those of traditional fixed income securities that last a year or more and produce annual yields. This empowers investors to form more informed choices when constructing their overall fixed-income portfolios.   Understanding Bond Equivalent Yield To truly understand how the bond equivalent yield formula works, it is vital to understand the fundamentals of bonds generally and to understand how bonds differ from stocks. Companies looking to boost capital may either issue stocks (equities) or bonds (fixed income). Equities, which are distributed to investors wi...

  What Is the cash Market Yield? The money market yield is that the rate of interest earned by investing in securities with high liquidity and maturities of but one year like negotiable certificates of deposit, U.S. Treasury bills, and municipal notes. market yield is calculated by taking the holding period yield and multiplying it by a 360-day bank year divided by days to maturity. It also can be calculated employing a discount rate yield. The money market yield is closely associated with the CD-equivalent yield and bond equivalent yield (BEY).   KEY TAKEAWAYS The market yield is what money market instruments are expected to return to investors. The money market involves the acquisition and sale of huge volumes of very short-term debt products, like overnight reserves or cash equivalent. An individual may invest within the market by purchasing a market open-end fund, buying a Treasury bill, or opening a market account at a bank.   Understanding the cash ...