BEY = (semi-annual rate x2) BEY = (1+HPR) ^ (182.5/ number of days to maturity) and there are also two ways to get EAY i am confused by when should we use each one, like in what kind of problem??? and they are should be the same no matter which one you use, but why it didnt end up with that? can someone please explain this? thanks~
EAY = (1 + PIR) ^ 1/N - 1 BEY = PIR * 2 BEY = face - purchase/(purchase) * (365/days to mat) —> See book 5 (corp finance)
"BEY = (1+HPR) ^ (182.5/ number of days to maturity) " WHERE IS THIS FROM ???
daj224 Wrote: ------------------------------------------------------- > "BEY = (1+HPR) ^ (182.5/ number of days to > maturity) " > > > WHERE IS THIS FROM ??? when we are doing T-bill question, arent we use this formulae to do??? but how come we cant use one formulae to do t-bill one and bond one???
When using BEY for T-Bill’s use the formula that daj referred to: BEY = face - purchase/(purchase) * (365/days to mat) For any other BEY calculation I use the formula found in the bond section. Hope this helps
gingerduck Wrote: ------------------------------------------------------- > BEY = (semi-annual rate x2) > BEY = [(1+HPR) ^ (182.5/ number of days to > maturity)] -1 x2 > > and there are also two ways to get EAY > > i am confused by when should we use each one, like > in what kind of problem??? > and they are should be the same no matter which > one you use, but why it didnt end up with that? > > > can someone please explain this? > thanks~