discount yield

discount yield definition - finance
The return on a security that is sold at a discount, such as money market instruments, commercial paper, and Treasury bills. These instruments are priced at a discount from par value (face value). Discount yield is calculated by dividing the annual discount rate earned on the investment by par value.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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