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thomas111121

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  • in reply to: Calculations #80862
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      • CFA Level 1
      11 Jan 2018 at 6:51 pm
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      the question is in relation to pricing bonds. Suppose that the one year spot rate is 2%, the 2 year spot rate is 3% and the 3 year spot rate is 4%. Calculate the price of the 3 year bond that makes a 5% annual coupon payment which comes to 102.960. The problem is how do I calculate the YTM? I know you put the 102.960 = 5/(1+r) + 5/(1+r)squared + 105(1+r) cubed to work it out but I don’t know how to compute it. I have a texas B11 Plus professional

      in reply to: Calculations #80864
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        • CFA Level 1
        11 Jan 2018 at 8:23 pm
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        you’re a star 🙂 

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