Converting YTM to EAY (and vice versa) for different periodicities

HI all,

Bit worried here, I’m struggling to easily convert YTM to EAY and vice versa for different periodicities without the use of the calculator. The logic is just not sinking in.

what is the easiest and quickest way to do and remember how to do this?

e.g. go from a quarterly YTM to a semi annual effective annual yield and then back again.

An urgent response and examples would be much appreciated.

Thanks

If by a quarterly YTM you mean an effective rate for one quarter (which, I suspect, you do), then to get a semiannual rate you compound it two times, and to get an EAY you compound it four times. Going from one effective rate to another is trivial: you compound.

If you’re having difficulties converting amongst various other rates (i.e., not effective rates), take a look at this article I wrote: http://financialexamhelp123.com/comparing-yield-measures-quant/