formula, 5 seconds
D/F x 360/T?!?!?
bonus – formula for discount in $ terms
soxboys21 Wrote: ------------------------------------------------------- > D/F x 360/T??? got it!
BDY d = (1-p) *360/T
now, tell me how to convert BDY to BEY
pepp Wrote: ------------------------------------------------------- > now, tell me how to convert BDY to BEY BEY = periodic interest rate x 2
daj224 Wrote: ------------------------------------------------------- > pepp Wrote: > -------------------------------------------------- > ----- > > now, tell me how to convert BDY to BEY > > > > BEY = periodic interest rate x 2 doesn’t answer the question
would it be something like BEY = [(1+BDY/360)^(365/2) -1] x 2 ??
I think the conversion should be like that: BDY= D/F*360/t Semiannual effective rate=(1+BDY)^1/2 - 1 BEY=2*Semiannual effective rate Am I correct?
minocfa Wrote: ------------------------------------------------------- > I think the conversion should be like that: > > > BDY= D/F*360/t BDY = (1-p)*360/T but D/F does not equal (1-p)
What is p? D: Discount F: Face Value t: Time to maturity
p is the price of the bond quoted in % of face value.