360/h times the difference between the face value and the current value divided by the face value gives you the discount yield on an instrument.

Name: 360/h times the difference between the face value and the current value divided by the face value gives you the discount yield on an instrument.
Brand: Quizplus
Rating: 5.0 (46 reviews)

Question

Quizplus · Accepted Answer

This statement is true. The formula for calculating the discount yield on an instrument is:
Discount Yield = (Face Value - Current Value) / Face Value * (360 / h)

360/h Times the Difference Between the Face Value and the Current