How to use this calculator
- Enter redemption value, purchase price, days to redemption.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Simple365-day convention for a term up to one year; not an effective compound yield or market-specific Treasury pricing rule.
Worked example
With redemption value = 1000, purchase price = 980, days to redemption = 180, simple bond-equivalent yield is approximately 4.138322%.
What the result means
Annualize the holding-period gain on a discount instrument using purchase price as the base.
Common questions
How should I interpret simple bond-equivalent yield?
Annualize the holding-period gain on a discount instrument using purchase price as the base.
What should I check before using this result?
Simple365-day convention for a term up to one year; not an effective compound yield or market-specific Treasury pricing rule.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.