Discount yield

Discount Yield
Discount Yield definition :
The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125.

discount yield
Fixed income markets have standard formulas for quoting the yield on various instruments.

DISCOUNT YIELD - The yield or annual interest rate on a security sold to an investor at a discount. A b...
dA dB dC dD dE dF dG dH dI dJ dK dL dM dN dO dP dQ dR dS dT dU dV dW dX dY dZ
previous 10 ...

Discount Yield
Yield on a security sold at a discount--most notably T-bills.

DISCOUNT YIELD " Yield on a discount security (most notably T-bills). The computation of a discount yield differs from the calculation of yield to maturity on interest bearing securities.

The Discount Yield quoted yield can be a misleading measure of the return on T-Bills because is an annualized rate of return based on the par value of the bills rather than on the actual dollar amount invested and is calculated on a 360-day basis ...

restatement of a discount yield as its interest-bearing equivalent.
Dictionary of Banking Terms
bond equivalent yield ...

Discount Yield
The yield on a security purchased at a price below its face value....(Read more)
Discounted Cashflow
A method of evaluating an investment by estimating future cash flows and taking into consideration the time value of money.

Also referred to as "discount yield".
Asset Allocation In A Bond Portfolio
How To Create A Modern Fixed-Income Portfolio
Basis ...

Equivalent bond yield
Comparison of discount yields and yields on bonds with coupons.

A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: (discount divided by the face value of the security) multiplied by the (number of days in the year divided by the number of days to maturity).

The quote is presented as a percentage of face value, and is determined by discounting the bond by using a 360-day-count convention, which assumes there are twelve 30-day months in a year.
Also referred to as "discount yield".

discount yield The yield on a security that is acquired at a discount. discounted This is when expected upcoming news affects a security's value.

See also: Banks, Bills, Funding, Expense, Time Value