Money Market Yield
What Is the cash Market Yield? The money market yield is that the rate of interest earned by investing in securities with high liquidity and maturities of but one year like negotiable certificates of deposit, U.S. Treasury bills, and municipal notes. market yield is calculated by taking the holding period yield and multiplying it by a 360-day bank year divided by days to maturity. It also can be calculated employing a discount rate yield. The money market yield is closely associated with the CD-equivalent yield and bond equivalent yield (BEY). KEY TAKEAWAYS The market yield is what money market instruments are expected to return to investors. The money market involves the acquisition and sale of huge volumes of very short-term debt products, like overnight reserves or cash equivalent. An individual may invest within the market by purchasing a market open-end fund, buying a Treasury bill, or opening a market account at a bank. Understanding the cash ...