medium level - quant

CFA Level I
#21

Thanks daj244. I completely don’t know it but now

#22

amber, how does that button work?

#23

2nd iconv arrow down to c/y = compounded x per year nom = base yld arrow to eff, compute Now all you have to know is p=e^rt for continuous compounding!

#24

thanks

#25

does it mean one can safely remember the formula like: EAR = [1+Annual Rate/no of compounding periods]^periods of payment - 1 if it is not so, could someone please dissect this problem or cite the respective Schweser/CFAI Book page no. that could explain it better? i kept doing (1+10/4)^4 … cuz the compounding periods were 4 a year… couldn’t get the answer at all… such a letdown! Appreciated. good one, thanks pepp

#26

Darius-I Wrote: ------------------------------------------------------- > does it mean one can safely remember the formula > like: > > EAR = [1+Annual Rate/no of compounding > periods]^periods of payment - 1 > yes

#27

thanks a lot mate. that helps.