Convert annual yield from one periodicity to another

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EPhilly

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Hi guys,
looking for a little help here…
(1+0.0496/2)^2 = (1+APR4/4)^4
the answer is .0493
how do you get to this answer?
Thanks!
 
(1+0.0496/2)^(2/4) = 1+apr4/4
1.01232= 1 +apr4/4
4*(1.01232-1) = Apr4
0.04928 = apr4
 
Hi,
Can anyone assist please with portfolio risk & return…how do i obtain the weights…i.e. 36.4 or 63.6…it must be simple.
12%=W1*19%+(1-W)*8%
Answer is
36.4%,(1-w)=63.6%
 
Hi,
Can you assist please with portfolio risk & return…how do i obtain the weights…i.e. 36.4 or 63.6…it must be simple.
12%=W1*19%+(1-W)*8%
Answer is
36.4%,(1-w)=63.6%
 
0,12=0,19w+0,08-0,08w
0,12-0,08=0,11w
0,11w=0,04 / : 0,11
w=0,3636
1-w = 1-0,3636 = 0,6364
 
EPhilly wrote:
Hi guys,
looking for a little help here…
(1+0.0496/2)^2 = (1+APR4/4)^4
the answer is .0493
how do you get to this answer?
Thanks!
Click to expand...
Why are you calculating matually?
Use the ICONV function on your BAii
NOM =4.96, C/Y = 2 , EFF CPT = 5.021504, C/Y = 4, NOM CPT = 4.929634515
complete in less than 30 sec.
 
Thanks a mil.
Which question bank are you using as prep for level 1 exam.
 
i would not advise changing around the C/Y and periodicity numbers - because they could affect other calculations that you use on the calculator using the TVM buttons. In case you forget to reset after a calculation - you would end up with a wrong answer.
(1+0.0496/2)^2 = (1+APR4/4)^4
so calculate the LHS here
(1+0.0496/2)^2 = 1.05021504
raise this to the 1/4 power
y^x button
4
then 1/n
=
1.01232
so 1+APR/4 = 1.01232
so APR = 0.01232 * 4 =0.04929
or 4.92%
====
it is a little laboured - but advantage - you have not changed any calculator settings that would affect future calculations.
 
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