In the schweser notes bond book pg 104 it gives the Bond equivalent yield as =[(1+monthly CFY)^6 -1] x 2. Above that the professors note says "it is highly unlikely that you will be required to actually calculate a CFY on the exam... if you need to calculate a CFY use the CF on your calc". Does this mean we probably dont have to memorize this formula?
Edited 1 time(s). Last edit at Wednesday, April 13, 2011 at 12:12PM by ba736.作者: ishfaque 时间: 2011-7-13 15:10
No it means that you will be given a monthly CFY, which you will have to convert to a BEY.作者: pogo 时间: 2011-7-13 15:10
Anyway, there is no point to memorize formulas like this. Understand the concept and you will be able to produce formula by yourself in a couple of seconds.作者: scr879 时间: 2011-7-13 15:10
^agree with the above
other some minor stuff in stats that is beyond my ability, I can derive every formula in the Level I and II curriculum...
It pays because first you will never forget it, and two because it meens you actually understand what is going on so you will be find on the exam
