Discount yield is a method to calculate the annualized yield on a security sold at a discount, such as U.S. Treasury bills. It provides an approximation of the return on investment based on the difference between the purchase price and the face value of the security.
Yield to Average Life (YAL) is a calculation used to estimate the expected return of a bond, assuming that parts of the bond issue are retired systematically prior to its final maturity date. This is common in cases where a sinking fund is involved.
