Yield to maturity (YTM, yield) is the bond's internal rate of return (IRR). It is the rate that discounts future cash flows to the current market price.
@tackleashley I got that a lot too. The cause of error 5 is having both PV & FV negative or positive. One has to be outflow and one has to be input, meaning one negative; one positive.
@alexzivo when you enter 950 for PV, be sure to press the +/- button, and then enter it as the PV. If you miss this then you will get the error message.
Thank you very much for the video, it was very helpful in solving my first calculation, but my second one doesnt seem to work! im told a bond has 10 years until maturity, a coupon rate of 8% and sells for $1100. I calculated my current yield on the bond as (80/1100 ) * 100 = 7.27% and i next needed to calculate the yeild to maturity. But when i followed your steps in excel my rate answer was #NUM! ... any ideas why ? thank you.
excellent job... I really wish 2 b ur student coz my finance prof thinks we r already expert in these subjects. And he just explain things as if we already have met them b4...
so easy to understand! thanks man, saved teh day for me haha
yoelfn 1 week ago
@tackleashley I got that a lot too. The cause of error 5 is having both PV & FV negative or positive. One has to be outflow and one has to be input, meaning one negative; one positive.
JoeyGenau78 1 month ago
Great video, your exaplanation was very clear :)
Yash4NZ 6 months ago
@alexzivo when you enter 950 for PV, be sure to press the +/- button, and then enter it as the PV. If you miss this then you will get the error message.
edibledaze 8 months ago
I tried to put all the figures into my calculator but it just says error 5 ? what am I doing wrong?
tackleashley 1 year ago
@Mj4665 did you put in a guess for the program? I got 7.138% following his steps.
2009worstyearever 1 year ago
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tanyamuriyan 1 year ago
You helped me to understand the subject in 10 min way better than my prof at college
mualex3 1 year ago
Thank you very much for the video, it was very helpful in solving my first calculation, but my second one doesnt seem to work! im told a bond has 10 years until maturity, a coupon rate of 8% and sells for $1100. I calculated my current yield on the bond as (80/1100 ) * 100 = 7.27% and i next needed to calculate the yeild to maturity. But when i followed your steps in excel my rate answer was #NUM! ... any ideas why ? thank you.
Mj4665 1 year ago
excellent job... I really wish 2 b ur student coz my finance prof thinks we r already expert in these subjects. And he just explain things as if we already have met them b4...
xxxTUBATUBExxx 1 year ago