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