Bank Discount Yield

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on

Jul 24, 2020, 6:28:07 PM

Created by

on

Oct 13, 2014, 11:22:57 AM

$"Bank Discount Yield" = ( "ParValue" - "PurchasePrice" )/( "ParValue" ) * 365/ "days"$

$"Par Value"$

$"Purchase Price"$

$"Days" (d)$

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43ab7057-52cb-11e4-a9fb-bc764e2038f2

The Bank Discount Yield equation is used to determine the annual percentage return on a bond.

EXAMPLE:

Given the following information :

Purchase price: $9800

Maturity: 90 days

Par value: $10,000 ,the calculator above will give a BDY of 8.1%.

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