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Discount Yield & Price Formula for T-Bills

July 19, 2012
  • Discount Yield = [(Face Value – Price) / Face Value][360/Days]
  • Days to maturity in a 360 day year is convention. BEY is more accurate. Can possibly be simplified further to:
  • (1-P)(360/NSM) = Discount Yield
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From → Asset Valuation

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