Schweser Practice exams have a couple problems with bond-equivalent yield. But a quick search of the electronic CFA curriculum suggests there is no LOS suggesting we need to know the bond-equivalent yield.
Is there a blue-box, CFA exam, EOC problem, or any LOS suggesting I should know this?
BEY was a L1 topic, perhaps you’re referring to effective annual interest rate? If so, V5 SS15 37c might help.
it’s just one of these stupid things CFAI throws in their vain attempt to be “tricky” but instead only succeed in detracting from the overall process by wasting time on the inconsequential
I don’t actually think that it is Prophets.
I believe it relates to LOS 23.e - Total Return. It’s not really covered in the text, but it does state that we need to consider the three sources of potential return - coupon income, reinvestment income and change in price (what BEY does) pg 24 of Volume 4. All previous knowledge is assumed also, so I’d say it’s one of those questions that they could throw in there to really see who is paying attention.
Good luck!
I don’t actually think that it is Prophets.
I believe it relates to LOS 23.e - Total Return. It’s not really covered in the text, but it does state that we need to consider the three sources of potential return - coupon income, reinvestment income and change in price (what BEY does) pg 24 of Volume 4. All previous knowledge is assumed also, so I’d say it’s one of those questions that they could throw in there to really see who is paying attention.
Good luck!