Different Types of Yields

CFA Level I
#1

Hi everyone,

Does anyone have any tricks that they use to remember which one is which when it comes to bank discount yield, holding period yield, effective annual yield, money market yield, and bond-equivalent yield?

Holding period and effective yield I usually get, but the others I often mix up and these are just easy points I’m dropping that I think could be the difference in passing.

#2

Try remembering them with days, discretion and compounding. Like BDY is 360 days based and simply the ratio of discount with face value.Bonds coupons are usually semi annual that’s why BDY is annualized by multiplying with 2 etc.