I changed the question around so it’s not the same as the mock but how are we supposed to know that this is based on a semiannual basis? I know that EAY is (1+YTM)^(365/t) -1 but since no discount period is given, how do we handle this?
The effective annual yield (EAY) for an investment is 9.0%. Its bond equivalent yield is closest to:
@thanhnguyen504 Isn’t that just annualizing it based off the fact that its semiannual? Wouldn’t the BEY for that be (1 + 0.0880613/2)^2? What was the answer?
S2000Magician, for my first contribution to AF I want to say you are my hero, and every question I’ve googled somehow leads to a proper explanation by you