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YieldToMaturity calculation fault #48

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labkeeper opened this issue Oct 9, 2019 · 0 comments
Open

YieldToMaturity calculation fault #48

labkeeper opened this issue Oct 9, 2019 · 0 comments
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@labkeeper
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Your YieldToMarurity calculation uses formula for approximate YTM (please read carefully mentioned source).
In the middle of http://www.financeformulas.net/Yield_to_Maturity.html there's formula for present value of a bond.
To get precise YTM you have to reverse formula to get r from it.
It's hardly reversible, and you have to approximate it with binary search or using Newton–Raphson method.
@keilw keilw added the analysis label Oct 10, 2019
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@keilw @labkeeper