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Thread moved from the technical forums, so no Homework Template is shown

Consider a five-year, 1000 dollars bond with a 5% coupon rate and annual coupons. If this bond is currently trading for a price of 957.35 dollars, what is the bond's yield to maturity?

F = 1000 dollars

c = 0.05

P = 957.35 dollars

N = 5 years

y = ?

I used the formula presented here for the yield-to-maturity calculation. The equation looks like this:

$$957.35 = \frac{1050}{(1+y)^5} + \frac{50}{(1+y)^4} + \frac{50}{(1+y)^3} + \frac{50}{(1+y)^2} + \frac{50}{(1+y)}$$

From that y = 6%.

What is the meaning of that number (6%)? The cash-flow is:

Buy the bond: -957.35 dollars

Receive first coupon after 1 year: 50 dollars

Receive second coupon after 2 years: 50 dollars

Receive third coupon after 3 years: 50 dollars

Receive fourth coupon after 4 years: 50 dollars

Receive fifth coupon and nominal value after 5 years: 1050 dollars

I cannot obtain 6% when dividing any combination of these numbers. So what is the meaning of that 6%?

F = 1000 dollars

c = 0.05

P = 957.35 dollars

N = 5 years

y = ?

I used the formula presented here for the yield-to-maturity calculation. The equation looks like this:

$$957.35 = \frac{1050}{(1+y)^5} + \frac{50}{(1+y)^4} + \frac{50}{(1+y)^3} + \frac{50}{(1+y)^2} + \frac{50}{(1+y)}$$

From that y = 6%.

What is the meaning of that number (6%)? The cash-flow is:

Buy the bond: -957.35 dollars

Receive first coupon after 1 year: 50 dollars

Receive second coupon after 2 years: 50 dollars

Receive third coupon after 3 years: 50 dollars

Receive fourth coupon after 4 years: 50 dollars

Receive fifth coupon and nominal value after 5 years: 1050 dollars

I cannot obtain 6% when dividing any combination of these numbers. So what is the meaning of that 6%?