discount yield

Discount yield

The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: (discount divided by the face value of the security) multiplied by the (number of days in the year divided by the number of days to maturity).

Discount Yield

A way to quote the price for bonds. It is calculated as the annualized yield assuming a 360 day year. One calculates the discount yield thusly:

Discount yield = (Discount from par value / par value) * (360 / Days until maturity)

The discount yield is also called the discount basis or the bank-discount basis.

discount yield

References in periodicals archive ?
SECOND SECURITIZATION TABLE AMOUNT TERM DISCOUNT YIELD SPREAD/CETES 241,300,000 180 days 20.
SERIES AMOUNT TERMS DISCOUNT YIELD SPREAD/CETES Series 1 $75,569,100 90 days 20.
Partnering with Mercury Solar Systems, 1BOG Group Discount Yields Four-Year Payback