fixed income: yield measures for money market instruments

CFA Level I Fixed Income
#1

Hello there,

I am wondering if the formula to get the present value for discount rates and add-on rates basis must be strictly followed and not opt to calculate the present value straight on the financial calculator.

I hope someone would respond here.

Thanks!

#2

If they tell you that a rate is a money market rate or a bank discount rate, you’d better use the correct formula; it’s likely that one of the incorrect answers will be the value you’d get using PV on your calculator.

#3

Thank you!! :slight_smile:

#4

You’re welcome.