Does anyone have an easier way to get the bank discount yield in % than the crap example they gave you?
180 Tbill
HPY 2.375%作者: shootingstar 时间: 2013-4-2 12:25
Because you are given HPR, calculate MMY and the BDY will be less than that…mmy is 4.750 .So BDY is 4.65 in this case it is A.
That’s how I do it.作者: dece2011 时间: 2013-4-2 12:25
perfect thanks!作者: siavosh 时间: 2013-4-2 12:25
1000/1.02375 = Purchase Price = 976.80
1000 976.80 = Discount of 23.20
BDY = D/F * (360/n)
= 23.20/1000 * (360/180) = 4.64%
The point made above is good too!
I think this might be the case always if you’re using the same rates:
HPY
