fixed income: yield measures for money market instruments

[anmuriel]

Hello there,
I am wondering if the formula to get the present value for discount rates and add-on rates basis must be strictly followed and not opt to calculate the present value straight on the financial calculator.
I hope someone would respond here.
Thanks!

 

[S2000magician]

If they tell you that a rate is a money market rate or a bank discount rate, you’d better use the correct formula; it’s likely that one of the incorrect answers will be the value you’d get using PV on your calculator.

 

[anmuriel]

Thank you!!

 

[S2000magician]

You’re welcome.