BDY = [(F – P)/F] x (360/t) = (D/F) x (360/t)
Bank discount yield is not a true yield because it is a rate based on face value instead of purchase price – the actual cost of the investment.
BDY = [(F – P)/F] x (360/t) = (D/F) x (360/t)
Bank discount yield is not a true yield because it is a rate based on face value instead of purchase price – the actual cost of the investment.