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Discount Security 365-Day Yield Calculator

Annualize a single redemption gain using a simple 365-day convention.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Buying for 950 and receiving 1,000 after 365 days gives a simple annualized yield of about 5.2632%. For a price of 1,000 and redemption of 1,100 after 365 days, the yield is exactly 10%.

Simple annualized yield = (redemption − purchase price) ÷ purchase price × 365 ÷ days

Worked example

Enter these known values and leave the other values blank.

Bond price
1000 USD
Face value
1100 USD
Number of days to maturity
365 day(s)
Bond equivalent yield (BEY)
10 %

Assumptions and limitations

  • It models one purchase and one redemption using simple annualization. Coupon payments, reinvestment, fees and market-specific bond yield conventions require additional calculations.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Does this handle coupon bonds or compound annual returns?

It models one purchase and one redemption using simple annualization. Coupon payments, reinvestment, fees and market-specific bond yield conventions require additional calculations.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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