Spot yield

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June 1, 2018 at 12:18 pm #455263
adurich
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When calculating spot yield

For example three years there is redemption plus interest

105 (1+r)^-3. 88.65

The answer is 5.8%

When I do it on calculator I can’t solve this equation for r .

Would you please rearrange this ..in a way I get r = 5.8 %

Thank u
June 1, 2018 at 5:32 pm #455309
John Moffat
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(1+r)^-3 is another way of writing 1/((1+r)^3)

Now you should be able to get the answer 🙂
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