The effective YIELD of any FIXED INCOME instrument issued on a discount, rather than COUPONbearing, basis, generally computed as: where Face is FACE VALUE, P is purchase price , and nMAT is the number of days until maturity. See also BOND EQUIVALENT YIELD , SIMPLE YIELD , TAXABLE EQUIVALENT YIELD , YIELD TO CALL , YIELD TO MATURITY .
Black’s Law Online Dictionary
