morning, ive memorised a lot of formulas etc but now trying to get a better understanding.
period returns, using the continuously compounded the annulised formula formula is 1/N*LN(S1/S0).
when calculating the annualised return of a bond [(FV+Coupons+interest earned)/Price Paid]^(1/N).
why do you divide by N when calculating the CC return but take the power when calculating normal annualised return over a period?
many thanks