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Yield to Maturity

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Using a Spreadsheet to Calculate Yield to Maturity. What is the yield to maturity on the following bonds; all have a maturity of 10 years, a face value of $1,000, and a coupon rate of 9 percent (paid semi-annually). The bonds' current market values are $945.50, $987.50, $1,090.00, and $1,225.875, respectively.

Market Value Total Payments Periodic Coupon Payment Face Value => The Yield to Maturity Will Be
945.50 10x2 = 20 1,000(.09)/2 = 45 $1,000 9.87%
987.50 20 45 1,000 9.19
1,090.00 20 45 1,000 7.69
1,225.875 20 45 1,000 5.97

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