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#reading-7-discounted-cashflows-applications

Question

Is the HPR of a T-bill annualized?

Answer

No

Tags

#reading-7-discounted-cashflows-applications

Question

Is the HPR of a T-bill annualized?

Answer

?

Tags

#reading-7-discounted-cashflows-applications

Question

Is the HPR of a T-bill annualized?

Answer

No

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**Subject 4. Different Yield Measures of a U.S. Treasury Bill**

ument at its maturity (that is, interest). Since a pure discount instrument (e.g., a T-bill) makes no interest payment, its HPY is (P 1 - P 0 )/P 0 . Note that HPY is computed on the basis of purchase price, not face value. <span>It is not an annualized yield. The effective annual yield is the annualized HPY on the basis of a 365-day year. It incorporates the effect of compounding interest.

ument at its maturity (that is, interest). Since a pure discount instrument (e.g., a T-bill) makes no interest payment, its HPY is (P 1 - P 0 )/P 0 . Note that HPY is computed on the basis of purchase price, not face value. <span>It is not an annualized yield. The effective annual yield is the annualized HPY on the basis of a 365-day year. It incorporates the effect of compounding interest.

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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