Final Query - 2 versions of HPY-BEY effective, converts, provided, annual, period

sdada

Schweser have provided two formulas for converting a HPY into a BEY as below. Assume the HPY is for a period of 30 days
1) BEY= HPY*365/30
2) BEY = HPY^(6) * 2
I personally agree with the second formula as it converts the HPY to an effective semi annual yield. I would hugely appreciate it if anyone could clarify this for me.

Carson

I’m not working today.
The first shows up in Corporate Finance, and it’s wrong.  Use it only in Corporate Finance.

Swanand

Thanks a million, I really appreciate it.