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4 Cards in this Set
- Front
- Back
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Bank Disc Yield BDY |
D/Face X 360/t Where D = dollar discount and t is the # of days till maturity |
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Yield quoted on BDY not representative of earned return because. .. |
1) ignores compound interest 2) based on face Value, not purchase price 3) 360 day vs 365 day |
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Holding Period Yield |
(P1 - P0 + D1) ÷ P0 |
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Holding Period Yield |
Bank Disc Yield (n/360) ÷ (1 - bank discount yield (n/360) |
