Yields yields yields...

Just a quick refresher on various yield measures we need to know. Money-market = HPR*(360/t) EAY = HPR^(365/t) BEY = 2*[(yield)^0.5] BDY = (D/F)*(360/t) T-bill = (1-p)*(360/t) Please correct me if i’m wrong somewhere, and feel free to add to this.

MMY is also = (360*BDY)/(360-BDY*t) For your BEY, should note that ‘yield’ is semi-annual yield. Also, keep in mind that… BDY < MMY < EAY

i am really confused with mmy and bdy is mmy = d/price * 360/t and bdy = d/F * 360/t

mmy is annualized HPY and bdy is the discount annualized on 360 calender based on par value.

No, money market yield is a 360 day yield just like the BDY… but unlike BDY, it’s not on a discount basis. I believe that is the distinction.

yes right, man was forgetting thhe basics here. phew…i am going blindddddd and my brain is DEAD!! going to watch seinfeld then back to study.

mcf - what is the formula for mmy then?

There are two formulas that work. One gets you there from the HPY and the other from the BDY. Money-market = HPR*(360/t) Money-market = (360*BDY)/(360-BDY*t) where BDY = BDY = (D/F)*(360/t)

THANK YOU mcf.