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Tags

#has-images #reading-7-discounted-cashflows-applications

Question

- r
_{BD}=**[...]** - 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

- r
_{BD}=**[...]** - D =
**[...]** - t =
**[...]** - 360 = the bank convention of the number of days in a year.

Answer

?

Tags

#has-images #reading-7-discounted-cashflows-applications

Question

- r
_{BD}=**[...]** - 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

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

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 |

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