c instructions plural: an outline or manual of technical procedure : directions d: a code that tells a computer to perform a particular operation 2: the action, practice, or profession of teaching
The yield curve describes the yields for Treasury bills, notes and bonds. It's called a curve because, if it were plotted on a graph, the yields would normally slope up. That's because Treasury bills, which are of short duration, don't usually pay as high a yield as the notes and even longer-term bonds. Why?
Calculating Yield for a U.S. Treasury Bill. A U.S. Treasury bill is the classic example of a pure discount instrument, where the interest the government pays is the difference between the amount it promises to pay back at maturity (the face value) and the amount it borrowed when issuing the T-bill (the discount).sing the previous example, if we have a bank discount yield of 2.16%, a face value of $50,000 and days to maturity of 100, then we calculate D as follows: D = (0.0216)*(50000)*(100/360) = 300. Market price = F-D = 50,000 - 300 = $49,700. Holding-Period Yield (HPY).