Normally it’s quite straightforward, if they give you semi annual yield, they can ask for BEY or EAY. But any for other periodic yield, they will ask for EAY only.
BEY is a simple x2 of semi-annual yield, whilst EAY is a compounded annual rate for any periodic yield.
Yup @sidmenon. It’s a popular question type, good that you spot it early and try to address it. Let us know when you come across another one then we can go through it together 🙂
Well, i don’t have a specific question right now, but i can look it up from the practice paper i did. I was asking because i noticed that they do ask such questions sometime which requires conversion.
I’ll get back to you with an example question soon enough.