Page 95 - CFA - Day 1 & 2 Course Notes
P. 95
LOS 7.e: Calculate and interpret the bank
discount yield, holding period yield, Session Unit 2: Discounted Cash Flow Applications
effective annual yield, and money market
yield for US Treasury bills and other money
market instruments
Holding period yield (HPY)/Return, is the total return an investor earns between the
purchase date and the sale or maturity date.
Example: HPY: What is the HPY for a T-bill priced
at $98,500 with a face value of $100,000 and 120
days remaining until maturity?
