Need business and finance help: How do I calculate yield to maturity on a 100 bond?

Anonymous
timer Asked: Nov 15th, 2015
account_balance_wallet $5

Question Description

How do I calculate,yield to maturity on a 100 bond this can be the company of your choose.

Tutor Answer

alancheng
School: University of Virginia

Thank you for the opportunity to help you with your question!

(yield to maturity) YTM = P/ (1 + (r/k) )^(kt)     where P = principal,  r = annual interest rate,  k = # of payments per year.  t = how long the bond takes to mature.

if you say a $100 bond, then.  YTM = 100 / (1 + r)^t    

So if you have a 30 year zero coupon bond with $100, at 10% annual YTM, then YTM = 100/(1.1)^30 = 5.73



Please let me know if you need any clarification. I'm always happy to answer your questions.

flag Report DMCA
Review

Anonymous
Top quality work from this guy! I'll be back!

Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors