Periodic: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Nominal annual rate page.) |
imported>Doug Williamson (Link with ACT/365 fixed page.) |
||
| Line 41: | Line 41: | ||
== See also == | == See also == | ||
* [[ACT/360]] | * [[ACT/360]] | ||
* [[ACT/365]] | * [[ACT/365 fixed]] | ||
* [[Conventional year]] | * [[Conventional year]] | ||
* [[Discount rate]] | * [[Discount rate]] | ||
* [[Nominal annual rate]] | * [[Nominal annual rate]] | ||
* [[Rate of return]] | * [[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.
