Question : when it comes to money market mutual funds, what does “7 day eff yield” mean?

still confused, if it is 5.00% is that yearly or in seven days?
money market mutual funds

Best answer:

Answer by Arbitrage
Think of it as the interest rate that you are getting assuming reinvestment over those 7 days but it’s presented in an annual form. So, if the interest rates stayed constant for the whole year, then 7 day effective yield is what you would get over 7 days.