Bank Discount Yield

The Bank Discount Yield is a method used by financial institutions when quoting prices for certain securities sold at a discount. The yield annualizes based on 360 day year and is presented as a percentage of the face value.





rbd = (D * 360) / (F * t)

  • D is Dollar Discount
  • F is Face value of the T-bill
  • t is number of remaining Days to Maturity
  • rbd is Bank Discount Yield
Please refer to the Yields worksheet in Yields.xls.

Next :
Effective Annual Yield

Back to Free Investment and Financial Calculator main page.

Back to Excel Add-Ins and Templates main page.