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Basic Question 0 of 27
What is the bond equivalent yield of a 7% annual-pay bond for semi-annual compounding?
B. 7.000%
C. 7.123%
A. 6.882%
B. 7.000%
C. 7.123%
User Contributed Comments 15
| User | Comment |
|---|---|
| danlan | Must be <7%, so A |
| Winner | how can you do this using a BAII without using this formula. |
| ramtor | use iconv funtion |
| sp24 | This video shows how do do use this function: http://movies.atomiclearning.com/k12/ti_ba2/ Take a look at C. 2.! |
| tschakawaka | from annual to semi-annual => interest has to get smaller due to compound interest effect - no calculation needed |
| chamad | Using BAII ----ICONV----EFF=7 C/Y=2---CPT NOM=6.88 |
| eb2568 | awesome chamad, thanks for the tip!! |
| devourb | what about hp12c? |
| moneyguy | Thanks, chamad!! Pretty darn easy now! |
| 2014 | Thanks Chamad |
| johntan1979 | Yeah, so many formulas to remember, ICONV function really helps! THANK YOU! |
| jonan203 | hp12c: 1.07 <enter> .5 <y^x> 1 <minus> 2 <times> |
| jrojasut09 | ICONV function is the way to go thanks @chamad |
| khalifa92 | better understand both ways formula and calculator |
| UcheSam | There is inverse relationship between BEY and periodicity. |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
calculate and interpret the present value(PV) of fixed-income and equity instruments based on expected future cash flows
calculate and interpret the implied return of fixed-income instruments and required return and implied growth of equity instruments given the present value (PV) and cash flows
CFA® 2025 Level I Curriculum, Volume 1, Module 2.