- CFA Exams
- CFA Level I Exam
- Study Session 14. Fixed Income (1)
- Reading 44. Introduction to Fixed-Income Valuation
- Subject 5. Yield Measures for Fixed-Rate Bonds

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**CFA Practice Question**

What is the semi-annual bond equivalent yield of a 12% annual-pay bond?

A. 11.66%

B. 12.00%

C. 12.36%

**Explanation:**2[(1.12)

^{0.5}-1] = 11.66%

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**User Contributed Comments**
3

User |
Comment |
---|---|

Criticull |
bey <apy |

bidisha |
Use the iconv function on baii for this. Enter 12 in eff and compute nom |

panoskol |
Correct me if I'm wrong but, aren't we to assume that a bond is ALWAYS going to be in BEY notation? (Meaning that this is a trick question with a real answer of B) |