What is the meaning of bond equivalent yield?

bond equivalent yield is an annual yield, expressed as a percentage, describing the return provided to bond holders. A bond equivalent yield is double the simple interest, semiannual yield. Since Treasury and agency notes and bonds, as well as most corporate and municipal bonds, pay interest semiannually, the bond equivalent yield is a way to compare yields available from discount securities such as Treasury bills and BAs with yields available from coupon securities. From that usage, this yield measure is also known as the coupon yield equivalent or the equivalent bond yield. For securities that pay daily, monthly, or quarterly interest, the bond equivalent yield understates the benefits obtained from the compounding of income.