Bond Equivalent Yield (BEY) Calculator

T-bills are quoted on a bank discount basis, which uses a 360-day year and face value as the base. BEY converts this to a standard annual yield.

BEY uses a 365-day year to make money market instruments comparable to coupon bonds, which use actual calendar days.

BEY is always higher than the bank discount rate for the same instrument because it uses a 365-day year and price (not face value) as the base.