Formula for add-on yield

[archived_user]

Hello,
Can someone tell me the formula difference between discount yield and add on yield.
Thanks.

 

[archived_user]

Add-on yield = (FV − PV) / PV.
Discount yield = (FV − PV) / FV.

 

[archived_user]

Thanks!

 

[archived_user]

You’re welcome.