标题: Questions about EAY [打印本页] 作者: dece2011 时间: 2013-4-6 21:14 标题: Questions about EAY
Can anyone help to explan why EAY = (1+HPY)^360/t 1 ?
I have no idea how to understand this equation…
Thanks very much.作者: btcapital 时间: 2013-4-6 21:14
HPY = the simple arithmetic return (yield) over the holding period of t days.
The Effective Annual Yield is the annualized equivalent (based on compounded interest) of the HPY over a 365day year. I’m not sure if the 360day is a typo, my schweser notes show an exponent of 365/t
