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How to use it and example. 1. Getting YTM The bond's face value is $100 The bond is sold at $95 The coupon rate is 5%, semiannual. for 10 yrs. Get the YTM on this bond. P/Y = 2 (Semiannual) FV = 100 PV = -95 (Should be negative) PMT = 2.5 N = 20 (Semiannual * 10 yrs) Click "calculate YTM" button 2. Getting Mortgage Value Supposed that the house value is $1000 You need to pay the mortgage monthly The APR rate is 12%, compounding monthly It's 10 years contract Get the monthly payment on this mortgage contract P/Y = 12 (Monthly) FV = 0 PV = 1000 N = 120 (monthly * 10 yrs) I/Y = 0.12 Click "calculate pmt" button 3. Getting Present Value of the bond The bond's face value is $100 The coupon rate is 5%, semi-annual, for 10 yrs. The discount rate is 7%. Get the value on this bond P/Y = 2 (Semiannual) FV = 100 PMT = 2.5 N = 20 (Semiannual * 10 yrs) I/Y=0.07 Click "calculate PV" button |