corporate finance vs quantitative methods inconsistency first, equivalent, corporate, finance

mfleming1983

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…

mkytz15

any ideas ? it talks about it on p 132 of the schweser secret sauce..

bpdulog

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

Houjichasan

you are correct, the wording in the schweser notes spun me out… thanks for taking the time..