Articles on: Investment Glossary

Discount Yield

The yield on a discount security (most notably T-bills). The computation of a discount yield differs from the calculation of yield to maturity on interest-bearing securities. Therefore, one must adjust the discount yield in order to compare it with yields on interest-bearing securities. See also: Discount; Bond Equivalent Yield; Yield to Maturity.

Updated on: 24/04/2023

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