Bank discount yield is the annualized rate of return on a purely discount-based financial instrument. It is used to calculate the expected return of a bond purchased at a discount and held until maturity.
Other related topics you might be interested to explore are Holding Period Yield, Effective Annual Yield, and Money Market Yield.
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Bank discount yield is among the topics included in the Quantitative Methods module of the CFA Level 1 Curriculum.
