Financial Exam Help 123

Day: September 30, 2013

  • Bond Equivalent Yield (BEY)

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    by

    Bill Campbell
    in

    Because a large number of coupon-paying bonds make their coupon payments semiannually (e.g., US Treasury Notes and Bonds, and many corporate bonds), and each coupon payment is ½ of the annual coupon (i.e., each coupon is calculated as 0.5 × annual coupon rate × par), the default yield convention for bonds is that the annual…

  • Commodity Yields

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    by

    Bill Campbell
    in

    Most investors interested in commodity exposure do not get it through direct investments in commodities; they do not buy physical oil, or wheat, or gold, or pork bellies, or whatever.  Most investors (including mutual funds, ETFs, institutional investors, and individual investors) get commodity exposure through derivatives, specifically through commodity futures or forward contracts.  We’ll concentrate…