It stands for coupon equivalent rate; also known as equivalent bond yield; the yield on a discount bond that is computed in the same way the yield on a coupon bond is calculated. This indicates the annual yield on a short-term fixed income security or product that is typically quoted on a bank-discount basis such that the yield can be comparable with quotations on coupon-bearing securities. The formula of coupon equivalent rate is:

For example, if a 10%, 90-day T-bill with a par value of $1,000 is selling for $970, the coupon equivalent rate would be:

CER= ($30/$970) x (365/90)= 12.54%