Semi annual bond basis vs Effective annual rate

Can someone please explain the differnce between Effective annual rate and Semi annual bond basis? Would be very greatful of you can explain Semi annual bond basis a bit on conceptual level. Thanks

Semiannual bond basis yield is a fancy name for BEY: bond equivalent yield. You compute the semiannual (effective) discount rate, then double it to get the BEY.

Effective annual yield is the effective semiannual yield compounded for two periods.

For example, if the effective semiannual yield is 3%,

BEY = 2 × 3% = 6%

EAY = (1 + 3%)² − 1 = 6.09%

Oh wow!! That was pretty simple…just worked out a few problems to know if I understood it and it worked well! Thanks a lot Magician!!

My pleasure.