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

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)

    Documents create a paper reality we call proof.
    Mason Cooley (b. 1927)

    Rules and particular inferences alike are justified by being brought into agreement with each other. A rule is amended if it yields an inference we are unwilling to accept; an inference is rejected if it violates a rule we are unwilling to amend. The process of justification is the delicate one of making mutual adjustments between rules and accepted inferences; and in the agreement achieved lies the only justification needed for either.
    Nelson Goodman (b. 1906)