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Corporate Finance

Measuring Returns: Bank Discount Yield and Other Metrics

Investors use metrics like bank discount yield (BDY), holding period yield, and effective annual yield to evaluate returns on short-term debt instruments, such as treasury bills. This guide explains how each metric is calculated and highlights the strengths and limitations of BDY. Understanding these yields helps investors make informed decisions in the money market.

Ned Krastev by Ned Krastev 3 min read
Corporate Finance
Logarithmic (Log) Returns in Finance
Ivan Kitov by Ivan Kitov 4 min read
Trading & Investing
Stock Order Types: Execution, Validity, and Clearing Instructions
Ivan Kitov by Ivan Kitov 5 min read

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