Mid-Year Conversion

Question 1

Mid-Year Convention

Answer 1

Assumes Cashflows do not all come at the end of the period.

Question 2

Mid-Year Convention Formula

Answer 2

Average of Beginning period and End period.

Question 3

Without Midyear Convention

Answer 3

May be discounting cashflows too much thus brining down valuation

Question 4

Mid-Year Convention TV

Answer 4

Higher Value