Calculator issues involving, calculator, complex, problem

heart

Reading 45, Example 4: PV = 1025, FV = 1000, PMT = -25, n = 20. When I plug these into my calculator and CPT I/Y, it gives me Error 7 ("the calculator computed I/Y for a very complex problem involving many iterations").

What am I missing? I'm just trying to calculate the YTM of a bond.

spartanag07

FV and PMT should be of same sign and PV of opposite. I like to have PV -ve as that cash outflow from my pocket and PMT and FV are cash inflows to my pocket so +ve.

ftwcfa

as Sgupta said, the problem is due to your signs. PV and FV can't have the same sign. Try this
PV = -1025, FV = 1000, PMT = 25, n = 20. and CPT I/Y then you'll get 2.342