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?



Asked by D.Hadenr, Last updated: Nov 25, 2020

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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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