A measure that converts the YIELD of a FIXED INCOME discount instrument into terms of a standard COUPON instrument, permitting proper comparison of investment alternatives. It is generally computed via: where Face is FACE VALUE, P is purchase price, n, is the number of days in the year following issuance, and nMAT is the number of days until maturity. See also DISCOUNT YIELD, SIMPLE YIELD, TAXABLE EQUIVALENT YIELD, YIELD TO CALL, YIELD TO MATURITY.

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