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Level 3 Book 3 Page 129

Consider a 7-year, 10% semiannual, $100 par corporate bond. The bond is priced to yield 9% ($105.11) .....

 

Any one can tell me how to arrive a yield of 9% given the price of $105.11 or vice versa?

[此贴子已经被作者于2009-4-5 12:57:55编辑过]

PV = -105.11

N = 14

FV = 100

PMT = 5

and you will get I/Y = 4.003, then x2 to get annualized rate.

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