Can you please explain T-bills annualized yield and bank discount rate?
I don’t understand the difference between annualized yield and bank discount basis r(BD).
Why would we need r(BD), why we have to calculate it? Why r(BD) exist?
Why don’t we use annualized yield, instead?
Please explain like I’m 5. I did a research on investopedia but It’s still too hard for me to understand.
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.