How it works
Bank discount yield = (face − price)/face × 360/days × 100. It uses face value and a 360-day basis.
Input definitions
- Face value
- Enter the value in the labeled unit.
- Purchase price
- Enter the value in the labeled unit.
- Days to maturity
- Enter the value in the labeled unit.
A worked example
- Face value
- 10000
- Purchase price
- 9800
- Days to maturity
- 90
Assumptions & limits
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Is bank discount yield the same as my investment return?
No. It uses face value rather than purchase price and a 360-day convention, so compare like-for-like quote conventions.
How does Treasury bill bank discount yield work?
Bank discount yield = (face − price)/face × 360/days × 100. It uses face value and a 360-day basis.
What should I check before using Treasury bill bank discount yield?
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.