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Tags
#has-images #reading-7-discounted-cashflows-applications
Question
- rBD = [...]
- D = [...]
- t = [...]
- 360 = the bank convention of the number of days in a year.
Answer
the annualized yield on a bank discount basis
the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P
the number of days remaining to maturity
the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P
the number of days remaining to maturity
Tags
#has-images #reading-7-discounted-cashflows-applications
Question
- rBD = [...]
- D = [...]
- t = [...]
- 360 = the bank convention of the number of days in a year.
Answer
?
Tags
#has-images #reading-7-discounted-cashflows-applications
Question
- rBD = [...]
- D = [...]
- t = [...]
- 360 = the bank convention of the number of days in a year.
Answer
the annualized yield on a bank discount basis
the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P
the number of days remaining to maturity
the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P
the number of days remaining to maturity
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Subject 4. Different Yield Measures of a U.S. Treasury Bill
bills). Pure discount instruments such as T-bills are quoted differently than U.S. government bonds. They are quoted on a bank discount basis rather than on a price basis: <span>r BD = the annualized yield on a bank discount basis D = the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P t = the number of days remaining to maturity 360 = the bank convention of the number of days in a year. Bank discount yield is not a meaningful measure of the return on investment because: It is based on the face value, not on the purchase price. Instead, return on inves
Subject 4. Different Yield Measures of a U.S. Treasury Bill
bills). Pure discount instruments such as T-bills are quoted differently than U.S. government bonds. They are quoted on a bank discount basis rather than on a price basis: <span>r BD = the annualized yield on a bank discount basis D = the dollar discount, which is equal to the difference between the face value of the bill, F, and its purchase price, P t = the number of days remaining to maturity 360 = the bank convention of the number of days in a year. Bank discount yield is not a meaningful measure of the return on investment because: It is based on the face value, not on the purchase price. Instead, return on inves
Summary
| status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
|---|---|---|---|---|---|---|---|
| repetition number in this series | 0 | memorised on | scheduled repetition | ||||
| scheduled repetition interval | last repetition or drill |
Details
No repetitionsDiscussion
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