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What is the difference between discount yield on a T bill and what a T bill bonds equivalent is.

What is the difference between discount yield on a T bill and what a T bill bonds equivalent is.

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The bond equivalent yield refers the quarterly, semi annually or monthly discount rates which can be converted to an annual discount yield for comparison. Hence for the sake of comparison between the two a bond equivalent yield is converted to an annual discount yield. In conclusion, we can say that Bond equivalent refers to either quarterly, semi annually or monthly discount rates where as discount yield is an annual yield to maturity.

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