CFA Practice Question

There are 490 practice questions for this study session.

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%

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)
You need to log in first to add your comment.