Bank Discount Yield Calculator

✖Discount is the difference between the selling price and the price paid for the item.ⓘ Discount [D]			+10% -10%
✖Face Value is the nominal value or dollar value of a security stated by the issuer.ⓘ Face Value [FV]			+10% -10%
✖Days to Maturity refers to the time period which indicates the duration or the term of the investment.ⓘ Days to Maturity [DTM]			+10% -10%

✖Bank Discount Yield is a financial metric used to calculate the annualized yield of a short-term money market instrument.ⓘ Bank Discount Yield [BDY]

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Formula

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Bank Discount Yield

Formula

`"BDY" = ("D"/"FV")*(360/"DTM")*100`

Example

`"2.25"=("0.15"/"800")*(360/"3")*100`

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Bank Discount Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100
BDY = (D/FV)*(360/DTM)*100
This formula uses 4 Variables

Variables Used

Bank Discount Yield - Bank Discount Yield is a financial metric used to calculate the annualized yield of a short-term money market instrument.
Discount - Discount is the difference between the selling price and the price paid for the item.
Face Value - Face Value is the nominal value or dollar value of a security stated by the issuer.
Days to Maturity - Days to Maturity refers to the time period which indicates the duration or the term of the investment.

STEP 1: Convert Input(s) to Base Unit

Discount: 0.15 --> No Conversion Required
Face Value: 800 --> No Conversion Required
Days to Maturity: 3 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

BDY = (D/FV)*(360/DTM)*100 --> (0.15/800)*(360/3)*100

Evaluating ... ...

BDY = 2.25

STEP 3: Convert Result to Output's Unit

2.25 --> No Conversion Required

FINAL ANSWER

2.25 <-- Bank Discount Yield

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

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Bank Discount Yield

Go Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100

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Bank Discount Yield Formula

Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100
BDY = (D/FV)*(360/DTM)*100

What is Bank Discount Yield?

The bank discount yield (BDY) is a measure of the annualized rate of return on a short-term debt instrument, such as a Treasury bill or a commercial paper, based on its discount from face value. It is a simple interest yield calculation and is often used for instruments that are issued at a discount and mature in less than one year.

Discount is the difference between the face value of the instrument and its purchase price.
Face Value
Face Value is the nominal value of the instrument.
Days to Maturity
Days to Maturity is the number of days remaining until the instrument matures.

How to Calculate Bank Discount Yield?

Bank Discount Yield calculator uses Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100 to calculate the Bank Discount Yield, The Bank Discount Yield formula is defined as a measure which calculates the annualized rate of return on a short-term debt instrument, such as a Treasury bill or a commercial paper, based on its discount from face value. Bank Discount Yield is denoted by BDY symbol.

How to calculate Bank Discount Yield using this online calculator? To use this online calculator for Bank Discount Yield, enter Discount (D), Face Value (FV) & Days to Maturity (DTM) and hit the calculate button. Here is how the Bank Discount Yield calculation can be explained with given input values -> 2.25 = (0.15/800)*(360/3)*100.

FAQ

What is Bank Discount Yield?

The Bank Discount Yield formula is defined as a measure which calculates the annualized rate of return on a short-term debt instrument, such as a Treasury bill or a commercial paper, based on its discount from face value and is represented as BDY = (D/FV)*(360/DTM)*100 or Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100. Discount is the difference between the selling price and the price paid for the item, Face Value is the nominal value or dollar value of a security stated by the issuer & Days to Maturity refers to the time period which indicates the duration or the term of the investment.

How to calculate Bank Discount Yield?

The Bank Discount Yield formula is defined as a measure which calculates the annualized rate of return on a short-term debt instrument, such as a Treasury bill or a commercial paper, based on its discount from face value is calculated using Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100. To calculate Bank Discount Yield, you need Discount (D), Face Value (FV) & Days to Maturity (DTM). With our tool, you need to enter the respective value for Discount, Face Value & Days to Maturity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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