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标题: Bond equivalent [打印本页]

作者: prashantsahni    时间: 2011-7-13 16:49     标题: Bond equivalent

It's different in Corporate finance

HPY x 365/t

So it means that we calculate in differently in exam ? Different calculation in CF section and different in quant section ?
作者: Siddimaula    时间: 2011-7-13 16:49

Bond equivalent yield*
作者: JRossSter    时间: 2011-7-13 16:49

Remeber BEY is only the annualized version of HPY

To understand BEY better...the explaintion inFixed income books is the best...
Most US govt bonds pay semi annual coupon.....say 6.3%...so if you want the BEYwould be the coupon payment compunded 6 monthly will be
=[(1+0.063)^0.5 -1]*2
=6.2%

it is always less than the EAY(6.3%)
作者: ogoluwa    时间: 2011-7-13 16:49

tks varundarji
作者: MythosHF    时间: 2011-7-13 16:49

Yes, calculate differently.

Anyone know why?
作者: homie    时间: 2011-7-13 16:49

- varundarji

I thought that when a bond yield was mentioned, say 6.3% semiannually, that WAS the BEY.....
作者: eagles_dare13    时间: 2011-7-13 16:49

No but you don't need to find the BEY to solve those problems




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