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What does bank discount yield mean?

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bank discount yield
(BDY; rBD)
Noun


The annualized discount rate expected from the face value of a money market instrument on an actual/360-day simple interest basis (i.e., without compounding) expressed as a percentage of the instrument’s face value to be received at maturity.

Synonym(s): 
  • discount yield; discount-basis yield.
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