Bond yield calculation

CFA Level I
#1

Purchase date of the bond: 04/18/2018

Purchase price: 100

Coupon : 3.5% (pays twice a year)

Maturity Date of the bond: 04/18/2019

Coupon Payment Date: 10/16/2018 (exactly 6 months from purchase date)

I know there are different yield calculations out there. But if I want to compare the yields between different financial instruments, I should calculate the effective yield right?

I do not have a financial calculator yet so I relied on Excel and I came up with 7.124%

Is this correct?

[IMG]http://i67.tinypic.com/2e3b9t4.jpg[IMG]

#2

You’re using 3.5% as the semiannual coupon; it’s the annual coupon.

The semiannual coupon payments are $17.50, not $35.

Get the calculator. Today. You need time to practice with it.

The EAY is 3.5306%.

#3

Can you please assume that it pays 3.5% every 6 months and let me know what the result is?

Thanks

#4

7.1225%.