标题: corporate finance vs quantitative methods inconsistency [打印本页] 作者: mfleming1983 时间: 2013-3-30 21:00 标题: corporate finance vs quantitative methods inconsistency
in Quant, the Bond equivalent yield is defined as 2 X the semi annual holding period yield. In Corporate finance, it is defined as [(face value-price) / price] X (365/days to maturity).
If we are asked to calculate this, which one do we use? If in quant, use the first def, if in corp fin, use the second?
Thanks in advance to anyone that can help…作者: mkytz15 时间: 2013-3-30 21:00
any ideas ? it talks about it on p 132 of the schweser secret sauce..作者: bpdulog 时间: 2013-3-30 21:00
those two formulas will give u the same thing.
BEY= [(face value-price) / price] X (365/days to maturity).
then ,for semi annual BEY:
= semi HPY* X (365/half yr)
=semi HPY* X 2
*notes:semi HPY=[ (face value-price) / price]
correct me if i m wrong作者: Houjichasan 时间: 2013-3-30 21:00
you are correct, the wording in the schweser notes spun me out… thanks for taking the time..
