Effective Annual Yield for Money Market Instruments

For a money market instrument such as a T-bill, Effective Annual Yield is the annualized value of the Holding Period Return and is calculated using the following formula:

In our T-bill example, the HPR was 2.53%. If the holding period was 90 days, we can calculate the effective annual yield as follows:

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Data Science in Finance: 9-Book Bundle

Data Science in Finance Book Bundle

Master R and Python for financial data science with our comprehensive bundle of 9 ebooks.

What's Included:

  • Getting Started with R
  • R Programming for Data Science
  • Data Visualization with R
  • Financial Time Series Analysis with R
  • Quantitative Trading Strategies with R
  • Derivatives with R
  • Credit Risk Modelling With R
  • Python for Data Science
  • Machine Learning in Finance using Python

Each book comes with PDFs, detailed explanations, step-by-step instructions, data files, and complete downloadable R code for all examples.