Bond Equivalent Yield: calculate BEY if the holding period yield (HPY) is 3% and holding period of the bond is 4 months

[hs974007]

Help me to calculate BEY if the holding period yield (HPY) is 3% and holding period of the bond is 4 months?

To be more specific, HPY was 3% and formula for calculating BEY = {[ (1+HPY)[SUP6]/[SUPn]]-1}*2

Concept of BEY is yield is calculated for every 6 months and then multiplied by 2.

I want the value for the text highlited. Thanks for the help.

 

[BigBeachBanana]

BEY = (2 * HPY) / (n * (1 + HPY))

where n=4/12

 

[khansaheb]

Help me to calculate BEY if the holding period yield (HPY) is 3% and holding period of the bond is 4 months?

To be more specific, HPY was 3% and formula for calculating BEY = {[ (1+HPY)[SUP6]/[SUPn]]-1}*2

Concept of BEY is yield is calculated for every 6 months and then multiplied by 2.

I want the value for the text highlited. Thanks for the help.

I suppose you are allowed use computer/calculator.

What have you tried? Exactly where are you stuck?