HomeОбразованиеRelated VideosMore From: I Hate Math Group, Inc

How to calculate the bond price and yield to maturity

845 ratings | 298302 views
This video will show you how to calculate the bond price and yield to maturity in a financial calculator. If you need to find the Present value by hand please watch this video :) http://youtu.be/5uAICRPUzsM There are more videos for EXCEL as well Like and subscribe :) Please visit us at http://www.i-hate-math.com Thanks for learning
Html code for embedding videos on your blog
Text Comments (147)
Spencer Scheuring (18 days ago)
Chaltham Almarri (1 month ago)
3:06 /7:32 Regarding: PV= 743.06 (1) PV of principle or Par value = 1000 x 0.2292= 229.20 0.2292 from "Present Value Table III. r= 12%. n=13" (2) PV of annuity interest payment = 80 x 6.4235 = 513.88 6.4235 from "Table IIII Present Value of annuity. r=12%, n=13" (1)+(2)= 229.20+ 513.88=743.08. Future and Present Value Table: http://www.retailinvestor.org/pdf/futurevaluetables.pdf
Cam Ham (1 month ago)
great video thank you thank you !!
M R (2 months ago)
wow what a waste of 7 minutes stupid video
Anthony Ajlouni (3 months ago)
Numbers r all wrong
Eric Arzoumanians (3 months ago)
my coupe is retarded
Colin Bowden (3 months ago)
i put all the numbers in perfectly but i got 715.37
Gerrard Tesla (4 months ago)
wasnt the present value is the price we pay in order to get back the par or face value after [email protected] years??
prateik sehitia (4 months ago)
how to find present value, please please help me, tell me the formula
Gabby Brown (4 months ago)
Very helpful!
GetFocusedx2 (5 months ago)
Helped me out like no other video out there. Thanks
Junghoon Lee (5 months ago)
shitty video
Ash quma (5 months ago)
Why in the first example of semiannually you didn't change the YTM by * 2,​ but in the second question you did? Plz demonstrate it my exam is very soon.
yolanda jere (6 months ago)
where's the formula???
batmangsxr (8 months ago)
I didnt know Sofia Vergara made finance videos
Jamal Jamal (8 months ago)
Hi, why the website not available?
玛丽 玛丽 (8 months ago)
We need formulas not answers
Anthony Dominguez (9 months ago)
hahaha! "That sucks for you." Thanks. I understand how to do these now.
JR Hoyer (9 months ago)
This is ridiculously bad. Terrible narration and presentation of the math.
Carlos Tarragona (10 months ago)
where the F*** is the formula love
Carlos Tarragona (10 months ago)
had to report this
Faisal Abba Gana (10 months ago)
This video does not make any sense. was not helpful at all. please delete
Lola H (11 months ago)
OMG!!! I thank you so much for making this video! It just saved me from failing badly in my exam for banking, trade and money. You just made me really happy! All the best to you.
T K (1 year ago)
This is horrible
my channel (1 year ago)
ghanta samaj nhi aaya
OEFVET (1 year ago)
This video will make total sense to those who have a Ti-83/84, Casio Fx-CG 10, 20, 50, 500, or any of the HP financial calculators. Sorry to hear anyone being made to calculate financial problems involving Time Value of Money/Bond calculations by hand. We're never going back to the stone age, so tell your teachers to get a life.
Karna priya (1 year ago)
FV is future value, not face value lol
Londiwe Vananda (1 year ago)
can also be called face value or par value
Valeska Medel (1 year ago)
I am more confused now.........
Karlet Liang (1 year ago)
my brain hurts after watching this tutorial
richa gupta (1 year ago)
Waste of time video...
Nouer Uz-Zaman (1 year ago)
ok guys.....vanessa did a good job with the explanation but she is getting quiet a bashing for not explaning the formula so, here is the formula (boy i had to search for 40 minutes to get this formula), even other youtube videos are not showing the formula as it is long winded PV (total) = actually are two different PV PV = PV of par value + PV of interest payments So, PV of par value formula is easiest which is = FV/(1+r)^2 r = market interest rate which is 12% in this case and PV of interest rate = PMT [1-(1/1+r)^2 / r ] PMT = is the fixed amount being paid each year in this case $80
80⁄(12%)*[1-1⁄(1+12%)^12 ]+1080⁄(1+12%)^13 =743.06. That is the formula =))
Mustafa Dayan (1 year ago)
This was the easiest explanation of PV and YTM by far. Bunch of thanks and forget below comments you are awesome!!! ;)
Uncle Bernie (1 year ago)
I can barely hear you.
shirala santosh j (1 year ago)
please sove and help me Par val. Rs 1000/- maturers in 12 years , coupan rate 11%, and has a yield to maturity of 12% the current yield on this bnd is ?   2] a coupan bonds is reported as ask price of 113%of the rs 1000/- par value. If the last interest payment was made 2 months ago and the coupan rate is 12% the invoice price of bond will be ……. 3] a coupan bond that pays interest annually is selling at par value of rs 1000/- matures in 5  years , and has a coupan rate of 9% the yield to maturity of this bond is …. 4] a coupan bond that pays interest annually , has a par value of rs 1000/- matures in 5 years and has yield to maturity of 10% . The intrinsic value of the bond today will be …… if the coupan rate is 12%
Pratik Sapkota (1 year ago)
how can we get cost of bond in percentage?
Pratik Sapkota (1 year ago)
man fuck the calculators.
danish hassan (1 year ago)
you are good. you cover the detail with simplicity
Sergio Guerrero (1 year ago)
how to calculate subtract percentage from whole name with a ti-84 plus ce 218,000 - 40% help
Kelly King (1 year ago)
Thank you so much for this video. This helped me so much.
Danielle DeFatta (2 years ago)
where does $743.06 come from ????
Kanthi Rekha (2 years ago)
I have finally understood the concepts after watching your videos, thank you so much :)
H.P. Teguh (2 years ago)
This is awesome! This is the only video I find informative enough to understand the concept
Juju Noor8 (2 years ago)
thank u xxxx
Belfi (2 years ago)
attention, in the last video you calculate the required ytm and NOT the y that i get in selling the bond ....
NoneOfYour business (2 years ago)
What are the steps in calculating the yield to maturity? That's my only problem..cause I understand your explanation about calculating bonds..its just that I didn't get the "yield to maturity" part. Please please heelp I need it for our exam
NoneOfYour business (2 years ago)
How did you compute the PV without the "coupon payment"? please help..I'm really confused..thanks in advance! :D
Taylor (2 years ago)
this video helped me so much. Far better than my instructor. Please come to my school
Arfen Malik (2 years ago)
Seriously u need to show how u r putting in the figures in calculator, especially the sum concerning yield to maturity
jkotis564 (2 years ago)
she did show it... she gave all the required information for using a financial calculator
Arfen Malik (2 years ago)
i dont have problem with calculating pv but why cant u show how like how u are putting in the numbers especially that example to find yield to maturity
NoneOfYour business (2 years ago)
me too I really need to know how to find yield to maturity
Mysterious World (2 years ago)
Can someone please explain to me : WHYYYY THE HEELLL WE Learn this useless formulas of ( finance - economy - sometimes accounting ) in College that has nothing to the when you have job after you graduate ????????? which formula do we use in our job ?????????
abigail mlambo (2 years ago)
how do you find the intrinsic value when there is a discount rate ?
Mohammed Bousselham (2 years ago)
what's the point of making a video without showing the damn formulas
#Welele (2 years ago)
Because we use Financial Calculators. Just punch in the variables
Michael Smuts (2 years ago)
Best video on bonds I have seen to date. EXCELLENT!!!
Celeste Bezerra (2 years ago)
This was great!! Thanks for your help!
ZeroLength (2 years ago)
Is there a formula to use to calculate the yield to maturity, its the last problem in the video, but you didn't show a formula to use to calculate it by hand?
Pang Dicken (2 years ago)
LoL u r doing wrong in question 2
Khalidah Kamal (2 years ago)
Again, Thank you. Thank you for saving my time and sanity.
Khalidah Kamal (2 years ago)
Thank you Ms. Vanessa Graulich. I am having a harder time hearing your voice compared to the intro which was louder over my speakers...BUT You are helping me gain more perspective in calculating bonds than me just trying to understand my text book. I APPRECIATE YOU!!!
Meenu Varghese (2 years ago)
could you please explain how did you get PV 743.06
Ernest Donable (1 month ago)
If you enter into Excel =PV(Interest Rate, Years (Time Period to Maturity), Payment Amount, Face Value, 0 or 1) then you should be good. Using her first example, it would look like this =PV(0.12,13,80,1000,0), then if you take that and multiply it by -1, you will get the answer you are looking for (743.06). The 0 or 1 at the end of the formula does not really apply here, but it 0 means the payments are being made at the end of the period, and 1 means that the payments are being made at the beginning of the period. Hope this helps!
RAHUL PARMAR (2 years ago)
Deena (2 years ago)
Thank you so much!
Carmen Zaragoza (2 years ago)
Thank you! This video really helped me understand!
SEE path 2016 (2 years ago)
If I met you I would give you a big hug and thank you because you made what took a 2 hour lecture to explain and still made students confused, crystal clear in your 7 minute explanations............so Thank you again...you're the best ;)
Jonathan Alvarez (2 years ago)
great video. Very clear. People who didn't understand should go back to her other videos. She goes over the details very carefully
Mahendra Jadhav (3 years ago)
Danielle Chavez (3 years ago)
Thank you, this video was helpful!
mzgemini0006 (3 years ago)
I soooooo sooooo get it now.... I wish you would have done this in excel... And it clearly shows the PV value but if you don't the basis then watch an introductory video on what PV and FV is.... Thank you so much Vanessa I had to watch it a few times but now I not only get it, I understand the concept...
jay vee (3 years ago)
by far the least helpful video in the entire internet
what a bullshit where is the formula explained
Leslie Ramirez (3 years ago)
How do you calculate a bond's YTM that has no coupon?
Dian Tiong (3 years ago)
Thank you so much Sis, You teach us very well. And very easy to follow. But what if the T-Bond Yield, Default Risk Premium and Liquidity Premium is given. No prices or any amount included. How to calculate that problem?
Tom Gowing (3 years ago)
how about this one : calculate the price of a government bond with an annual coupon of 1.8 percent and 4 years remaining to maturity if the yield to maturity of the bond is 2.3 percent - pls HELP 
Barbara Pinheiro (3 years ago)
Very helpful! Thank you so much!!
this video was not properly explained i became more confused trying to figure out how to calculate bond and yield to maturity(FYI i have wacthed the other video on calculating pv by hand), try explaining this better by breaking down the formular that is why this is youtube(everything should be broken down into basics)
don't get this tried calculating the pv not adding up maybe am calculating it wrong (1+0.08)*13 years=what ever answer you get divide it by 1000
Mohammed Riham (4 years ago)
correct answer i believe is 13.49 % as per excel. even i got 13.52 % manually. still useful vedio
Alvin Parkinson (4 years ago)
Not bad a little more computation factors displayed could be a little more helpful, but other thanthat not bad. I really needed this for my finance class.
Julie L (4 years ago)
but isn't it better to buy a bond at a discount because interest expense is supposed to increase (due to the carrying value increasing)
Svajūnas Aliukonis (4 years ago)
Jesus Christ where are the formulas, bad bad bad video
kaycee derp (4 years ago)
thaaaaaaaaaaaaaaaaaaaaaaaaaank youuuuuuuuuuu! 
TrueTak (4 years ago)
You explain it very well. Thank you.
Naweed Amin (4 years ago)
she is brazillian i know know it from the way she speak but she is good teacher
Casey Cummings (4 years ago)
This actually helped me. Thank you!
Kenneth Hensley (4 years ago)
You're a great teacher! You explain the "why," which is very important and often overlooked in finance. 
Jeff Beecham (4 years ago)
Wow. Very helpful. A few thoughts.  1) For those not understanding this, you need to have a good grasp on PV, FV, etc before trying to understand this. If you don't already know how to work Time Value of Money problems on your financial calculator, this isn't going to help much. I'm sure Vanessa has other videos that can help with that. My favorite is by "mssuprof". 2) It would have been nice to have it stated that with semi-annual payments, everything gets doubled or halved. I didn't get that the first time. Maybe I wasn't paying attention though.  3) I'm 5 courses into my CFP and this is the best explanation on Yield to Maturity/Current Price, etc, I've been through!   Thanks so much!  (also, Valerie is right, very hard to hear) 
mzgemini0006 (3 years ago)
+Jeff Beecham I agree.... you have to know the basis of PV and FV
Naima Arif (4 years ago)
Very helpful and to the point! Perfect for people who are already good with time value money in the calculator. For those of you who don't get it I suggest u find a video covering that first
DidehMow (4 years ago)
Would be nice if you actually showed the formula
Andrejs Slobodjaniks (4 years ago)
could you please show me the ling of that video. 
Andrejs Slobodjaniks (4 years ago)
+Vanessa Graulich Didnt find out where is the formula in your videos. :(
Andrejs Slobodjaniks (4 years ago)
+Vanessa Graulich so would be nice if you could reffer to that video, but actually yes. Video would make more sence if you would show the formula at least for the second. Now i have to look for the formula somewhere else, what means the video does not meet the requirements why i came here. But the video is still good dont get me wrong, seems you doing great job hope u will use my advice. 
Nilesh Fowdar (4 years ago)
not helpful
Josh Dines (4 years ago)
THIS IS STUPID... You aren't showing how to calculate PV....
prashanth mathi (1 month ago)
prateik sehitia (4 months ago)
+#Welele how to find PV, kindly help
#Welele (2 years ago)
But you can do this with financial calculator. i found this video awesome
Roeben Rubeni (4 years ago)
read a book...
Piriathy (4 years ago)
I'm just trying to figure out which fucking buttons to press to get to the bond formula plug ins, I can't figure out the formula manually.
Valerie Cook (5 years ago)
Good video but I can't hear :( I have the volume all the way up 
Josh Molina (5 years ago)
Bien hecho. Las explicaciones fueron hechas perfectamente! Gracias!
Josh Molina (5 years ago)
Bien hecho. Las explicaciones fueron hechas perfectamente! Gracias!
Alejandro Guerrero (3 years ago)
+Lance Reisler there is no official language in the USA. anybody and everybody hase the right to speak whatever it is they desire. pendejo
Chilufya Kapakala (5 years ago)
hey pliz stick to the formulas the calculator thing z no working out for some of us 
Phoebe C (5 years ago)
I love your accent :P
Miss KK (5 years ago)
Thank you! You did it so well and quickly!
Velko Todorov (5 years ago)
Thanks! Excelent explanation !
Rasmessi (5 years ago)

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.