in the Exhibit 4.9 are various yield calculations located in a box on the left-hand side of the screen. The CD equivalent yield (also called money market equivalent yield) makes the quoted yield on a bank discount basis more comparable on other money market instruments that pay interest on a 360-day basis. Recall, the formula for the CD equivalent yield is     CD equivalent yield = 360Y ----------------------------- 360- t(Yd)     The notation is the same as above.   To illustrate the calculation of the CD equivalent yield, once again we use the information from Exhibit 4.9. The yield on a bank discount basis is 2.28154%. The CD equivalent yield is computed as follows:     CDequivalentyield= 360(0.0228154) - = 0.02294 = 2.294% ------------------------------------------------------- 360- 84(0.0228154)     This calculation agrees with the yield presented in the screen. Just above the CD yield is simple interest. Simple interest is the ratio of the cash flow to be received from holding the security until maturity (i.e., the discount) to the securitys price annualized on the basis of a 360- day year. Recall from Chapter 2, the simple interest formula is simply     Simple Interest( ACT 360 ) = ----D-------- ´(360t ) price     To illustrate the calculation, lets us continue to use the Reference Bill in Exhibit 4.9. The simple interest (ACT/360) is computed as follows:       Simple Interest( ACT 360 ) = --0----.-5----3---2---3----5---9--- ´(36084 ) = 2.294% 99.467641     This calculation agrees with the one presented in the screen.