HOW DO YOU CALCULATE THE YIELD TO MATURITY AS OPPOSED TO THE YIELDS - ProProfs Discuss
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How do you calculate the yield to maturity as opposed to the yields shown in the text?

How do you calculate the yield to maturity as opposed to the yields shown in the text?

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Asked by D.Hadenr, Last updated: Dec 23, 2024

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

I cannot demonstrate using numbers the yield to maturity because the math is far too complicated. one would need to use a financial calculator to calculate an accurate yield to maturity. since use of a financial calculator is not required in this course, there are two less complicated bond yields taught in the text:1. current yield2. approximate yield to maturitywhen calculating yields, you will usually get different answers for current yield, approximate yield to maturity, and yield to maturity on a financial calculator. the most accurate, as mentioned above, is yield to maturity calculated on a financial calculator. the least accurate would be the current yield.
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