Can anyone help with finding or combining formulas to calculate the "yield to maturity" at purchase date for a security investment that pays principal and interest on a monthly basis?
For example:
Par/original face = 10,000,000
Factor = 0.98919653000
Current face = 9,891,965.30
Principal = 9,842,505.47
Purchased accrued interest = 28,714.18
Coupon = 5.75%
price = 99.5
PSA = 222
Weighted Average Life = 4.22 yrs
Other info if needed:
Settlement date = 1/20/07
Next pmt date = 2/15/07 (for accrual period of 1/1/07 - 1/31/07 OR a 14 day delay)
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