2014 中央银行学 利率 3.ppt

Part two How to calculate the yield to maturity  Yield to maturity: simple loans Yield to maturity = interest rate that equates today’s value with present value of all future payments 1. Simple Loan (i = 10%) $100 = $110/(1 + i) ? $110 – $100 $10 i = = = 0.10 = 10% $100 $100 Yield to maturity: a fixed-payment loan Because it involves more than one payment, the present value of the fixed-payment loan is calculated as the sum of the present values of all payments: LV = FP/ (1+ i ) + FP/ (1+ i )2 + FP/ (1+ i )3 +······+ FP/ (1+ i )n