my question regarding these rate measures is simple. when is each used and why?!!
HPY we all know that it is a measure of return for a period in which you hold an asset/portfolio etc … which is good to be used when you want to avoid the timing of the investment’s cash flows. ie you buy a stock now…and then u sell 10 days later
MMY annualizes HPY?but then again EAY does the same?!
for BEY i can see that it is HPY*(365/DTM) …and i have seen it also 2*[(1+YTM)^0.5-1] for semiannual…which bring the same result?!
am i correct so far? and what are the other rates used for?