Yields

[PC79]

Anyone have any good ways to remember the avaious yields? (i.e. Money market, Bond Equivalent, Effective Annual, HPY)

Is there any order they will always follow or anything?

 

[NYCGorilla]

know the formulas backwards and forwards

 

[BruinBanker]

Yea,

Bank Discount yield: Discount/ Face Value x (360/t)

aside from that one, always calculate the HPY which is (Accumulated Value/ Beginning Value)-1

When you have the HPY you can get the others:

HPY x (360/t) is the MMY (just the holding period yield annualized 360 without compounding)
(1+HPY)^365/t is the EAY (the holding period yield annualized 365 days WITH compounding)

 

[Omar Adnan]

I assume they just got stick to minds by now especially that they are repeated in more than one volume (Qunat, CP, and derivatives)