BDY on Premium Bond?

[thisisbrianly]

This might be a silly question, but for some reason this popped into my head last night when I was in bed.
Can you do a Bank Discount Yield measure on a premium bond?
D/F x 360/t
I don’t think it’d work because the ‘D’ would be negative…..I’ve noticed that the only BDY calculation problems have been for non-coupon bearing bonds under a year, so maybe this would never come up…..

 

[Cinderella]

Would never be the case as short term bonds with a term less than one year are usually zero coupon.

 

[maxmeomeo]

Interesting question. But in my humble opinion, as its name already suggest, it should apply only to bond with discount. Not bond sold at premium.