Page 37 - FINAL CFA SLIDES JUNE 2019 DAY 2
P. 37
LOS 7.e: Calculate and interpret the bank discount yield,
holding period yield, effective annual yield, and money Session Unit 2: Discounted Cash Flow Applications
market yield for US Treasury bills and other money
market instruments, p116
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?
