Calculating and comparing bond yields isn’t easy. Bonds can have varying frequencies of coupon payments; the number of days in the year may also differ. Because fixed-income investments use a variety of yield conventions, it is important to convert the yield to a common basis when comparing different bonds. Taken separately, these conversions are straightforward; however, when a problem contains both compounding period and day count conversions, the correct solution technique is not so obvious.
Futures
