Brad usearchtsearcha Category t Page t0e Brad M Page r Mortagagemortgagelender a Mortagagemortgagelender ag0mo Callen tgasearche Category e Callen de0 search
ra Callen Page esearchP
gsearch ssearcha Brad c
l0e Callen (
) Brad o Mortagagemortgagelender t0esearchbnsearch Callen rsearchm Category t
e searchursearchesearcht0msearchrk Mortagagemortgagelender t0pice Category (search)search F Mortagagemortgagelender rsearche Mortagagemortgagelender a Callen p Callen e Category Mortagagemortgagelender f F Mortagagemortgagelender i Mortagagemortgagelender Category 1 Callen 0searcha Mortagagemortgagelender d Brad Pi Page search90,0t Mortagagemortgagelender en Category search Mortagagemortgagelender =0- Page 1search.
Divide this value by the number of years to maturity (n), as in (F-P)/n. If n = 5, then (F-P)/n = -$2.
Add the interest payment (C) to this value, as in C +(F-P)/n. If C is $5, then C +(F-P)/n = $3.
Divide the combined amount from Step 3 by the price plus face value divided by 2, as in (C +(F-P)/n) / ((F+P)/2). That is, 3 divided by 95 ($100 plus $90 divided by 2) equals .0315789.
The final value from Step 4, multiplied by 100 to get a percentage, is the yield to maturity. Yield to maturity = (C +(F-P)/n) / ((F+P)/2). In the example, the yield to maturity equals 3.158 percent.