Series 79: Discount Yield

Taken from our Series 79 Top-off Online Guide

Discount Yield

The discount yield, also known as the bond equivalent yield, is an expression of the effective yield of a bond that is sold at a discount from par and does not pay periodic interest, such as a zero coupon bond. This number allows prospective bond buyers to compare the yields of conventional bonds and discount bonds.

To calculate the discount yield, divide the discount (face value minus the purchase

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