- 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
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) |