Calculation of YTM by using PRM allowed calculator-TI -30XS

devinarastogi84
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Calculation of YTM by using PRM allowed calculator-TI -30XS

Postby devinarastogi84 » Wed Apr 30, 2014 5:11 pm

How do we calculate YTM by putting all other variables by using TI 30XS calculator, I cant see FV, PMT and N variables in this calculator. Please advice.

edupristine
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Calculation of YTM by using PRM allowed calculator-TI -30XS

Postby edupristine » Thu May 01, 2014 8:23 am

Could you please provide an exact question, which one will be helpful to explain.

devinarastogi84
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Postby devinarastogi84 » Thu May 01, 2014 5:59 pm

Find the yield to maturity on a semi-annual coupon bond with a face value of $1000, a
10% coupon rate, and 15 years remaining until maturity given that the bond price is $862.35.

edupristine
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Calculation of YTM by using PRM allowed calculator-TI -30XS

Postby edupristine » Mon May 05, 2014 1:42 pm

We can use approximation method :-
semi - annual YTM = [F-P/N]+C/ F+P/2
= [1000-862.35/15*2(semi annual)] + 50(coupon) /(1000+862.35)/2
= 54.58/931.17 = 5.86%

YTM = 2* semi - annual YTM = 2*5.86% = 11.72%

devinarastogi84
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Postby devinarastogi84 » Mon May 12, 2014 7:05 pm

can you pls write the formula properly with brackets wherever required. how did you get 54.58/931.17 ??

I am getting the same thing. pls expalin

devinarastogi84
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Postby devinarastogi84 » Mon May 12, 2014 7:12 pm

i got it. the way you have written formula is quite confusing. it should have been written as :
(((F-P)/N)+C)/ (F+P)/2


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