Definitions for "bond equivalent yield"
A restating of the yield on a debt instrument in terms of semiannual interest,...
The return on a discounted security figured on a basis that permits comparison with interest-bearing securities.  For a short-term (under six months) discounted security, the bond equivalent yield is an annualized rate of return.  For a longer term discounted security, the bond equivalent yield is determined by a computation that adjusts for the absence of periodic payments over the life of the security.  See:  DISCOUNTED SECURITY.
The amount of yield an investor must earn from a taxable bond in order to get the same amount of money he or she would earn on a tax-free bond.