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:
Membership
Learn the skills required to excel in data science and data analytics covering R, Python, machine learning, and AI.
I WANT TO JOINJOIN 30,000 DATA PROFESSIONALS
Free Guides - Getting Started with R and Python
Enter your name and email address below and we will email you the guides for R programming and Python.