A conversion metric to compare rates on bonds with varying characteristics. Since bonds come with all types of coupon rates and payment frequencies, it's important to be able to find some common measure to compare different types of bonds side-by-side. By using a semi-annual bond basis (SABB), the interest rate of a bond that pays other than semi-annually is converted into its semi-annual equivalent. 



|||When considering the purchase of a bond from a brokerage, be sure to ask for the interest rate to be quoted on a semi-annual bond basis. If they are unable to provide this computation for you and you plan on investing in bonds on a regular basis, you should consider investing in a financial calculator or computer program that can assist you in this calculation.