MONEY MARKETS
Discount Yield
Quotes the discount from face value on a money-market basis.
Formula
DY = (F-P)/F × basis/days
Variables: F face value; P purchase price; basis convention; days to maturity
What it means
Quotes the discount from face value on a money-market basis.
Example
A bill bought below par can be converted into a discount yield using its remaining days and quotation basis.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.