Difference between discount yield and bond equivalent yield


Response to the following questions:

1. What are the three characteristics common to money market securities?

2. What is the difference between a discount yield and a bond equivalent yield? Which yield is used for Treasury bill quotes?

3. Why can discount yields not generally be compared to yields on other (nondiscount) securities?

4. What is the difference between a single-payment yield and a bond equivalent yield?

 

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Financial Accounting: Difference between discount yield and bond equivalent yield
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