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Convert annual yield from one periodicity to another

Hi guys,

looking for a little help here… 

(1+0.0496/2)2 = (1+APR4/4)4

the answer is .0493

how do you get to this answer? 

Thanks! 

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(1+0.0496/2)(2/4) = 1+apr4/4

1.01232= 1 +apr4/4

4*(1.01232-1) = apr4

0.04928 = apr4

“Mmmmmm, something…” - H. Simpson

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Simplify the complicated side; don't complify the simplicated side.

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Thanks bread maker

Hi,

Can anyone assist please with portfolio risk & return…how do i obtain the weights…i.e. 36.4 or 63.6…it must be simple.

12%=W1*19%+(1-W)*8%

Answer is

36.4%,(1-w)=63.6%

Hi,

Can you assist please with portfolio risk & return…how do i obtain the weights…i.e. 36.4 or 63.6…it must be simple.

12%=W1*19%+(1-W)*8%

Answer is

36.4%,(1-w)=63.6%

0,12=0,19w+0,08-0,08w

0,12-0,08=0,11w

0,11w=0,04 / : 0,11

w=0,3636

1-w = 1-0,3636 = 0,6364

play it again, Sam

EPhilly wrote:

Hi guys,

looking for a little help here… 

(1+0.0496/2)2 = (1+APR4/4)4

the answer is .0493

how do you get to this answer? 

Thanks! 

Why are you calculating matually?

Use the ICONV function on your BAii

NOM =4.96,  C/Y = 2 , EFF CPT = 5.021504, C/Y = 4, NOM CPT = 4.929634515 

complete in less than 30 sec.

Thanks a mil.

Which question bank are you using as prep for level 1 exam.

Thanks! @kuromusha

 

i would not advise changing around the C/Y and periodicity numbers - because they could affect other calculations that you use on the calculator using the TVM buttons. In case you forget to reset after a calculation - you would end up with a wrong answer.

(1+0.0496/2)2 = (1+APR4/4)4

so calculate the LHS here

(1+0.0496/2)2 = 1.05021504

raise this to the 1/4 power

yx button

4

then 1/n

=

1.01232

so 1+APR/4 = 1.01232

so APR = 0.01232 * 4 =0.04929

or 4.92%

====

it is a little laboured - but advantage - you have not changed any calculator settings that would affect future calculations.

CP

breadmaker wrote:

(1+0.0496/2)(2/4) = 1+apr4/4

1.01232= 1 +apr4/4

4*(1.01232-1) = Apr4

0.04928 = apr4

I`m in this right now in the book and stuck with this algebra,

after this line : 1.01232= 1 +apr4/4

why did u put a parentesis before multiplying?

shouldn`t multiply comes first?

^ I subtracted 1 from the left hand side and then multiplied the entire left hand side by 4. I used brackets to preserve equality.

You could multiply both sides by 4 and then subtract 4.  Different paths, same end result. yes

“Mmmmmm, something…” - H. Simpson