CFAI Afternoon mock #29 discount, example, easier

atate2007

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%

siavosh

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

dece2011

perfect thanks!

shootingstar

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.