The yield to maturity reported in the financial pages for Treasury securities
A) is calculated by compounding the semiannual yield.
B) is calculated by doubling the semiannual yield.
C) is also called the bond equivalent yield.
D) is calculated as the yield-to-call for premium bonds.
E) Both b and c are true.

Question

Quizplus · Accepted Answer

The yield to maturity for Treasury securities is often calculated by doubling the semiannual yield, which is a method to annualize the yield. This is also referred to as the bond equivalent yield.

The Yield to Maturity Reported in the Financial Pages for Treasury