Guys, who can offer some clarification in the interest yields area? BEY, YTM, EAY… I’m so confused!!! never know if i need to multiply the result by 2 to get the BEY or leave the answer as calculated. I was fine with this concept until I got to the fixed income valuation part. Thank you for the posts.
Answers are usually stated in annual terms. So if you calculated using semi-annual compounding, you will probably have to multiply by two. Just think of what you calculated and read the question carefully. On fixed income you can use the Bond functions of the calculator and avoid this entirely.
projectplatnyc Wrote: ------------------------------------------------------- > Answers are usually stated in annual terms. So if > you calculated using semi-annual compounding, you > will probably have to multiply by two. > > Just think of what you calculated and read the > question carefully. On fixed income you can use > the Bond functions of the calculator and avoid > this entirely. what is this bond function? the only thing i know how to use with my calculator is CF / TVM
Me too. lose a lot of points for my tested exams!! I prepared a list of the calculation of these yields and hand write the formula and procedure how to calculate on a piece of paper…(coz quick sheet doesn’t have the details.) eg: Holding period return=(EV-BV+CF received)/Beginning value Be really carefully for the denominators. they often change & number of days in the year (360 Vs 365) that would help!!
projectplatnyc Wrote: ------------------------------------------------------- > Answers are usually stated in annual terms. So if > you calculated using semi-annual compounding, you > will probably have to multiply by two. > > Just think of what you calculated and read the > question carefully. On fixed income you can use > the Bond functions of the calculator and avoid > this entirely. I checked my calculator manual and that bond function seems too complicated. Is it really worth the time to get familiar with it or is it faster to value bonds using the TVM function??
IVC Wrote: ------------------------------------------------------- > I checked my calculator manual and that bond > function seems too complicated. Is it really worth > the time to get familiar with it or is it faster > to value bonds using the TVM function?? Bond function = financial Pornography Pornography (Noun) - Items that are designed to excite.
How would the bond function help with these? I have been doing them manually…