What is the 'Discount Yield'
Discount yield is a measure of a bond's percentage return. Discount yield is most frequently used to calculate the yield on shortterm bonds and treasury bills sold at a discount. This yield calculation uses a 30day month and 360day year to simplify calculations. Discount yield is calculated by the following formula:
Discount Yield = [(par value  purchase price)/par value] * [360/days to maturity]
BREAKING DOWN 'Discount Yield'
The 30/360 simplification used in discount yield means that the discount yield figure is a slightly inaccurate measure of an investor's true return on investment. Although more accurate measures of yield are available, discount yield is still used as a matter of convention within the shortterm bond and treasury bill world. This may be partially due to the fact that the yield on U.S. Treasury Bills is most commonly quoted as a discount yield.

Gross Yield
The yield on an investment before the deduction of taxes and ... 
Yield To Worst  YTW
The lowest potential yield that can be received on a bond without ... 
Expected Return
The amount one would anticipate receiving on an investment that ... 
Current Yield
Annual income (interest or dividends) divided by the current ... 
Realized Yield
The actual amount of return earned on a security investment over ... 
Yield
The income return on an investment. This refers to the interest ...

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