AuthorTopic: Reading 45 (Level 1) Yield To Maturity; Problem with Calculator
@2008-03-23 10:18:21
Hey Guys,

I'm having some real trouble with my calculator, when I try to do any of the Yield to Maturity Excercises in Reading 45 of Volume 4 of Level 1, I keep getting the wrong answer, I've looking at the manual and I get nothing! I've followed the steps of the example on page 46.

Could anyone help me by telling me the process of calculating yield to maturity rate by guiding me step by step through the example of page 46... I understand the concept and everything... this is purely a calculation problem.
@2008-06-15 07:14:23
Did you solve your problem? I'm preparing for CFA Level 1 in Dec, and I have exactly the same problem.
Also, I don't know where does FV = 1000 comes from.
@2008-07-04 07:27:05
What's the actual question? If you repeat it then those of us who have passed L1 (and therefore must have got this understood) can help!
@2008-07-16 12:36:50
I can help you guys
@2008-07-21 15:44:58
Most likely your problem is that you aren't changing the signs of your FV or PV cash flows. Consider a zero coupon bond that costs $100 and delivers $1000 in 5 yrs. I would treat $100 as a cash outflow (negative) and the $1000 as an inflow (positive). Solve PV=(100), FV=1000, N=5, cpt.....i= you tell me, don't have a financial calculator.

CFA Discussion Topic: Reading 45 (Level 1) Yield To Maturity; Problem with Calculator

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu