Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/5

Click to flip

5 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)
Bank discount yield (formula)
rBD = D/F * 360/t
Think of how to mathematically calculate simple interest based on discounted value.
Holding period yield (formula)
HPY = (P1 - P0 + D1) / P0
Think of simple interest, ending value divided by starting value.
Effective annual yield (formula)
(1 + HPY)^365/t = (1 + EAY)
Solve for EAY
Use 365 days and the HPY in the formula.
Money market yield (formula)
based on rBD
rMM = 360 * rBD / (360 - t * rBD)
Start with simple rBD formula, think of "simple interest", solve D from rBD formula and replace so you can abbreviate for F.
Money market yield (formula)
based on HPY
rMM = HPY * 360 / t
rMM is to 360 what HPY is to t.