Commercial Paper Yields
Like Treasury Bills, yields on commercial paper are quoted on a discount basis—the discount return to commercial paper holders is the annualized percentage difference between the price paid for the paper and the par value using a 360-day year. Specifically: icp(dy) = x (360/h)
and when converted to a bond equivalent yield:
icp(bey) = x (365/h)
Read more about this topic: Commercial Paper
Famous quotes containing the words commercial, paper and/or yields:
“It is only by not paying one’s bills that one can hope to live in the memory of the commercial classes.”
—Oscar Wilde (1854–1900)
“All the reputedly powerful reactionaries are merely paper tigers. The reason is that they are divorced from the people. Look! Was not Hitler a paper tiger? Was Hitler not overthrown?... U.S. imperialism has not yet been overthrown and it has the atomic bomb. I believe it also will be overthrown. It, too, is a paper tiger.”
—Mao Zedong (1893–1976)
“As yields no mercy to desert,
Nor grace to those that crave it.
Sweet sun, when thou lookest on,
Pray her regard my moan;
Sweet birds, when you sing to her,
To yield some pity, woo her;”
—Thomas Lodge (1558?–1625)