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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (49810)	1/15/2006 7:16:11 PM
From: russwinter	Respond to of 110194

For some reason Yahoo is quoting T-bills as a discount rate and the others as investment rate. Yahoo needs to compare apples to apples, so not a good quote. One formula, the discount yield method, takes into account the return as a percent of the face value of a T-bill, rather than its purchase price. Since the purchase price is typically less than face value, the discount method tends to understate the yield. An alternative formula, called the investment yield method, also can be used to calculate the yield. Unlike the discount yield formula, the investment yield method relates the investor's return to the purchase price of the bill. ny.frb.org