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The Calculation of Current Yield and Yield to Maturity

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Uploaded by on Jul 24, 2010

This is a simple example for the calculation of current yield and yield to maturity of a bond.

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Education

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  • Good explanation!!! But i guess it's for a particular case. Because for annuity it wont walk, since the formula of the the bond price will be the present value of annuity to maturity (can be 5 ,10, 20, 30,... ) times the coupon, and added the present value of the principal. This will give a more complex equation to get the YTM.

  • Thanks a lot! :)

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