标题: EAY vs BEY [打印本页] 作者: bchadwick 时间: 2011-7-13 14:54 标题: EAY vs BEY
Saw this talked about before but cant find it.
As it relates to effective borrowing or lending when using calls and puts...
EAY is the rate computed ^ 365/days of loan
BEY is EAY^.5 *2 ?????
Any help appreciated....ive seen both on practice tests.作者: strikethree 时间: 2011-7-13 14:54
Schweser Book 3 Page 19
BEY = Rate * Number of Periods in a Year
EAR = (1+ Rate) ^ Number of Periods in a Year - 1
I seem to be forgetting stuff - have to go back and look, a lot of tension building up!!作者: mar350 时间: 2011-7-13 14:54
june2009 Wrote:
-------------------------------------------------------
> Saw this talked about before but cant find it.
>
> As it relates to effective borrowing or lending
> when using calls and puts...
>
> EAY is the rate computed ^ 365/days of loan
>
> BEY is EAY^.5 *2 ?????
>
> Any help appreciated....ive seen both on practice
> tests.
Yes. EAY is compounded. So if you have an annual EAY, you uncompound it by ^0.5, as you have done, and then get BEY by multiplying by 2, to get the full year BEY.作者: justin88 时间: 2011-7-13 14:54
