Make UK and Periodic: Difference between pages
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An amount, usually expressed in percentage or decimal terms, applied as a proportionate amount per period, rather than per annum. | |||
In relation to periodic yields (r): | |||
r = R x days / year | |||
: | ''Where:'' | ||
r = periodic yield | |||
R = nominal annual yield | |||
days = actual number of days in the period under review | |||
= | year = number of days in a conventional year | ||
[[ | |||
<span style="color:#4B0082">'''Example'''</span> | |||
Interest is quoted at a market rate of 4% in USD, for 90 days maturity. | |||
R = nominal annual yield = 0.04 (= 4%) | |||
days = actual number of days in the period under review = 90 | |||
year = number of days in a conventional year = 360 for USD | |||
Periodic yield = 0.04 x 90 / 360 | |||
= 0.01 (= 1%) | |||
''This is the periodic yield per 90 days in USD.'' | |||
== See also == | |||
* [[ACT/360]] | |||
* [[ACT/365 fixed]] | |||
* [[Conventional year]] | |||
* [[Discount rate]] | |||
* [[Nominal annual rate]] | |||
* [[Rate of return]] |
Revision as of 14:24, 26 November 2015
An amount, usually expressed in percentage or decimal terms, applied as a proportionate amount per period, rather than per annum.
In relation to periodic yields (r):
r = R x days / year
Where:
r = periodic yield
R = nominal annual yield
days = actual number of days in the period under review
year = number of days in a conventional year
Example
Interest is quoted at a market rate of 4% in USD, for 90 days maturity.
R = nominal annual yield = 0.04 (= 4%)
days = actual number of days in the period under review = 90
year = number of days in a conventional year = 360 for USD
Periodic yield = 0.04 x 90 / 360
= 0.01 (= 1%)
This is the periodic yield per 90 days in USD.