How to use TI BA II+ to find a bond's yield (YTM)

Discussion in 'Today's YouTube' started by David Harper CFA FRM, Jul 9, 2012.

  1. David Harper CFA FRM

    David Harper CFA FRM David Harper CFA FRM (test) Staff Member

    Question: What is the yield (YTM) of a $100 face value bond with 5 years to maturity that pays a semi-annual coupon of 4.0% and has a current price of $92.00?



    Tip: note the quick "gut check" at the end: the bond is priced below par, so we need a yield higher than the coupon rate of 4.0% ... which will remind us to finish by multiplying by 2!
     

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