Discount price to annualised yield.
A worked example
Starting figures
- Face value
- $1,000
- Purchase price
- $975
- Days to maturity
- 182
What it returns
- Annualised yield
- 5.142%
- Profit at maturity
- $25
- Discount rate
- 4.945%
How to read the results
With the defaults above, annualised yield works out at 5.142%.