Can anyone enlighten me with the below question gotten from Kaplan Schweser book 4 Reading 44.3 LOS 44.h page 278, money market yields example, Question 3

A bank deposit for 100days is quoted with an add-on yield of 1.5% based on a 360-day year.

Calculate the bond equivalent yield(BEY) and the yield on a semiannual bond basis.

The model answer is as below:

- BEY = 1.5% x (365/360) =
**1.5208%** - 1.5% x 100/360 = 0.4167%

EAY = 1.004167^365/100 - 1= 1.5294%

Equivalent semiannual yield = 1.015294^0.5 - 1= 0.7618%

Annual yield = 0.7618 x 2 =**1.5236%**

I got no issue with 1., but I’ve got confused with 2., and after 2 hours of reading around the forum, I’ve come out with below working, which I think would be easier to understand if it’s to be taught in the textbook, please enlighten me if there’s any wrong with my working.

Compounding frequency/periodicity = 365/100= 3.65

Since we have BEY of 1.5208% from 1., we can use the EAY formula directly - (1+(0.015208/(365/100)))^(365/100) - 1 = **1.5292%** (slight different to model answer)

Semiannual effective rate = 1.015292^0.5 - 1 = 0.7617%

Annual yield = 2 x 0.7617% = **1.5234%**

My answer is slightly different from the sample answer, are my workings wrong or correct and discrepancies were just due to rounding?