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Old 04-20-2013, 06:40 PM
Mathew92 Mathew92 is offline
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Post Bond Yields

Santos Engry has 9.5% annual coupon outstanding with 15 year left until maturity. The bonds have face value of $1,000 and ther current market price is $955.76. What is the YTM on Santos bonds? and What is the Current yield on Santos Outstanding bonds?
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Old 04-21-2013, 12:18 AM
abc201879456 abc201879456 is offline
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Default Re: Bond Yields

current yields=coupon/current market price=(9.5%*1000)/955.76=9.9399%
Approx YTM= (c+(FV-p)/n)/(FV+p/2)=(95+(1000-955.76)/15)/(1000+955.76)/2=10.016%

Please note in cuurent yield coupon should always be taking annual even if coupon is paid semiannually

Fixed income is covered in details in simplilearn.com CFA preparatory courses

Last edited by abc201879456; 04-21-2013 at 12:47 AM.
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