I am confused by following questions.
Which yield is referred to on bond’s yield curve ? YTM (Yield to maturity) or BEY (Bond-equivalent yield) ? And what is the yield when it is referred to for a bond generally ?
Anyone can help ?
YTM is being referred to on a bond’s yield curve. The yield curve shows the required rate of return for your bond (YTM) and the equivalent bond price for that given YTM.
A bond doesn’t have a yield curve. A bond market has a yield curve, and a particular bond has a yield based on where it falls on the (market’s) yield curve.
Both. The most common yield given for a bond is its yield to maturity (YTM), but such yields are always calculated as bond equivalent yields (BEYs), not as effective annual yields (EAYs).
S2000magician : Thank you so much for your advice !
My pleasure.