measure of return, this is the method that dealers have adopted to quote discount notes like Treasury bills. Many dealer quote sheets and some other reporting services provide two other yield measures that attempt to make the quoted yield comparable to that for a coupon bond and interest-bearing money market instruments-the CD equivalent yield and the bond equivalent yield.   CD Equivalent Yield The CD equivalent yield (also called the money market equivalent yield) makes the quoted yield on a bank discount basis more comparable to     yield quotations on other money market instruments that pay interest on a 360-day basis. It does this by taking into consideration the price of the discount security (i.e., the amount invested) rather than its face value. The formula for the CD equivalent yield is   360Yd CD equivalent yield = ----------------------------- 360- t(Yd)     To illustrate the calculation of the CD equivalent, suppose a 91-day Treasury bill has a yield on a bank discount basis is 5.56%. The CD equivalentyieldis computed as follows:   CDequivalentyield= 360(0.0556) - = 0.05639 = 5.639% --------------------------------------------- 360- 91(0.0556)     Bond-Equivalent Yield The measure that seeks to make a discount instrument like a Treasury bill or an agency discount note comparable to coupon Treasuries is the bond- equivalent yield as discussed earlier in the chapter. This yield measure makes the quoted yield on a bank discount basis more comparable to yields on Treasury notes and bonds that use an Actual/Actual day count conven- tion. The calculations depend on whether the short-term discount instru- ment has 182 days or less to maturity or more than 182 days to maturity.   Discount Instruments with Less Than 182 Days to Maturity To convert the yield on a bank discount to a bond-equivalent yield for a bill with less than 182 days to maturity, we use the following formula:   T(Yd) Bond-equivalent yield = -----------------------------