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)

    To give money to a sufferer is only a come-off. It is only a postponement of the real payment, a bribe paid for silence, a credit system in which a paper promise to pay answers for the time instead of liquidation. We owe to man higher succors than food and fire. We owe to man.
    Ralph Waldo Emerson (1803–1882)

    A new person is to me a great event, and hinders me from sleep. I have often had fine fancies about persons which have given me delicious hours; but the joy ends in the day; it yields no fruit.
    Ralph Waldo Emerson (1803–1882)