Commercial Paper - Commercial Paper Yields

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

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