Money Market Yield

The money market yield, also known as the CD-equivalent yield, allows the quoted yield on a T-bill to be compared with an interest-bearing money market instrument. Money market yield uses 360 day year for calculation.

In our T-bill example, we can calculate MMY as follows:

MMY = (360*9.86%)/(360 – 90*9.86%) = 10.12%

We can also calculate MMY from HPY as MMY is just the annualized HPY on a 360-day year basis.

HPR = 2.53%

Days to maturity = 60

MMY = 2.53*360/90 = 10.11%

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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.