When the interest is compounded half yearly, the number of conversion periods in a year is four.

Answer

To solve the question about the number of conversion periods when interest is compounded half-yearly, we can follow these steps:

### Step-by-Step Solution:

1. **Understanding Half-Yearly Compounding**:
- When interest is compounded half-yearly, it means that the interest is calculated twice a year. Each period lasts for 6 months.

2. **Calculating the Number of Conversion Periods in a Year**:
- Since there are 12 months in a year and each half-yearly period is 6 months long, we can calculate the number of half-yearly periods in a year:
\[ \text{Number of half-yearly periods} = \frac{12 \text{ months}}{6 \text{ months/period}} = 2 \text{ periods} \]

3. **Clarifying the Given Statement**:
- The question states that the number of conversion periods in a year is 4. However, based on our calculation, we found that the correct number of conversion periods for half-yearly compounding is 2.

4. **Conclusion**:
- Therefore, the statement in the question is incorrect. The correct number of conversion periods when interest is compounded half-yearly is 2.