Bond Equivalent Yield - 6 month HPY? material, discount, effective, 2011

edgeon

Hopefully this is the right forum to post actual questions in relation to the material.

I wanted to know whether a 6 month Holding Period Yield would essentially be the same thing as the semi annual discount rate or the effective semi annual yield.

So for example: in trying to find Bond Equivalent Yield (2 * semi annual discount rate), you could instead just do 2 * (6 month HPY).



Edited 1 time(s). Last edit at Thursday, February 3, 2011 at 08:11PM by ajc3388.

smartpants

Yes, I think so.
Semi annual discount rate is same as 6 month HPY and also same as EAY compounded for half a year.