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What Is Cd Equivalent Yield? |
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Answer» The CD equivalent YIELD makes the quoted yield on a treasury bill more comparable to yield quotations on the other MONEY market instrument that pay INTEREST on a 360-day basis. It does this by taking into consideration the price of the treasury bill rather than its face VALUE. The CD equivalent yield makes the quoted yield on a treasury bill more comparable to yield quotations on the other money market instrument that pay interest on a 360-day basis. It does this by taking into consideration the price of the treasury bill rather than its face value. |
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