Voir iotafinance en FrançaisYou are viewing the English version of iotafinance.comIotafinance auf Deutsch sehen
Icon for the finance formula section

Price of a discount security formula

Description of the Price of a discount security formula

Formula for the calculation of the price of a discount security like Treasury bills, commercial papers or certificates of deposit.

Formula

\[ P = \frac{100}{\left (1+r \cdot \frac {nbj_{vd \to md}}{nbj_{base}}\right )} \ \]

Symbols

\(nbj_{base}\ \)       
Number of days per year (360, 365 or 366 depending on day-count convention)
\(nbj_{vm}\ \)       
Number of days between value date and maturity date
\(r\ \)       
Yield