The spot rates z1= 9%, z2 = 10%, and z3 = 11%.
how to use HP 12C to calculate Yield to Maturity of a 6% bond maturing in 3 years?
Many thanks
P/Y=C/Y=1
Calculate PV of each cash flow using applicable spot rate
1 N 9 I 6 FV CPT PV -5.50459
2 N 10 I 6 FV CPT PV -4.95868
3 N 11 I 106 FV CPT PV -77.50629
Add up all the PVs and solve for I using the coupon and maturity amounts:
3 N 87.96956 PV -6 PMT -100 FV CPT I 10.91581
many thanks