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Basic Question 1 of 9
What is the bond equivalent yield of a 7% annual-pay bond for semi-annual compounding?
B. 7.000%
C. 7.123%
A. 6.882%
B. 7.000%
C. 7.123%
User Contributed Comments 15
| User | Comment |
|---|---|
| danlan | Must be <7%, so A |
| Winner | how can you do this using a BAII without using this formula. |
| ramtor | use iconv funtion |
| sp24 | This video shows how do do use this function: http://movies.atomiclearning.com/k12/ti_ba2/ Take a look at C. 2.! |
| tschakawaka | from annual to semi-annual => interest has to get smaller due to compound interest effect - no calculation needed |
| chamad | Using BAII ----ICONV----EFF=7 C/Y=2---CPT NOM=6.88 |
| eb2568 | awesome chamad, thanks for the tip!! |
| devourb | what about hp12c? |
| moneyguy | Thanks, chamad!! Pretty darn easy now! |
| 2014 | Thanks Chamad |
| johntan1979 | Yeah, so many formulas to remember, ICONV function really helps! THANK YOU! |
| jonan203 | hp12c: 1.07 <enter> .5 <y^x> 1 <minus> 2 <times> |
| jrojasut09 | ICONV function is the way to go thanks @chamad |
| khalifa92 | better understand both ways formula and calculator |
| UcheSam | There is inverse relationship between BEY and periodicity. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the cash conversion cycle and compare issuers' cash conversion cycles
CFA® 2026 Level I Curriculum, Volume 2, Module 4.