quick question on MMY vs BDY

CFA Level I Fixed Income
#1

investopedia says they are calculated the same way:

http://www.investopedia.com/terms/m/money-market-yield.asp#axzz1e1CCjFxC

my notes say, money market yield is [face value - price] / price * 360/dtm

and bank discount yield is [Face value - price] / Face value * 360/dtm

i’ve looked through the schweser and CFA books for a little bit… haven’t come across the formulas (just the definitions)

So which one is it??

#2

The formulas should be in schweser & the text, i don’t have them in front of me sorry…if i remember correctly the formulas are different and your notes look right. Only difference is MMY is dividing by price and BDY by face val, find a way to remember that and you’ll be golden.

#3

thanks andrew. yes i’m sure the formulas are there, i just missed them somehow… checked the appendixes, glossaries… always finding the definitions, but not specific formulas…

#4

The formulas in your notes are correct. These are given at the end of reading-6 in CFA text.

#5

thanks nishant1