How to use this calculator
- Enter redemption face value, purchase price, days to redemption.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
This uses explicitly labelled 360/365 simple conventions; it is not an effective annual compound yield or an official security quote.
Worked example
With redemption face value = 1000, purchase price = 980, days to redemption = 180, bank discount yield (360-day face basis) is approximately 4%.
What the result means
Different denominators and annualization bases produce different quoted yields on the same note.
Common questions
How should I interpret bank discount yield (360-day face basis)?
Different denominators and annualization bases produce different quoted yields on the same note.
What should I check before using this result?
This uses explicitly labelled 360/365 simple conventions; it is not an effective annual compound yield or an official security quote.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.