Coupon Equivalent Yield - CEY

A method of calculation used to calculate the yield on bonds with maturities of less than one year and which normally sell at a discount and do not pay coupons.

Formula
Coupon Equivalent Yield (CEY)

For example, the CEY calculation allows bond investors to compare the return on a 180-day Treasury bill to a one-year coupon paying bond, to evaluate which instrument will give the investor a higher return.



Investment dictionary. . 2012.

Look at other dictionaries:

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  • coupon equivalent yield — True interest cost expressed on the basis of a 365 day year. Bloomberg Financial Dictionary …   Financial and business terms

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  • equivalent bond yield — See bond equivalent yield. American Banker Glossary effective annual yield on a short term, noninterest bearing security calculated for comparison to yields quoted on coupon securities. Bloomberg Financial Dictionary …   Financial and business terms

  • coupon yield equivalent — See bond equivalent yield. American Banker Glossary …   Financial and business terms

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