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Basic Question 3 of 9
What is the annual-pay yield of a bond with a 7% yield on a semi-annual-pay basis?
B. 7.000%
C. 7.123%
A. 6.882%
B. 7.000%
C. 7.123%
User Contributed Comments 6
| User | Comment |
|---|---|
| Aimy | (1+7%/2)square-1=7.123%, exactly |
| nchilds | (1.035)squared |
| chamad | Using BAII ----ICONV----NOM=7 C/Y=2---CPT EFF=7.123% |
| bhaynes | No computation is even needed. Annual pay yield will always be > BEY. Must be answer C. |
| 2014 | Rite I hope we such thinking questions ready answer in exam |
| johntan1979 | Best thing to do is to still compute, now that the ICONV takes only a few seconds. What if there are 2 answers more than 7%? |
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Learning Outcome Statements
calculate annual yield on a bond for varying compounding periods in a year
CFA® 2025 Level I Curriculum, Volume 4, Module 7.