What is the yield to maturity on an 18-year, zero coupon bond selling for 30% of par value?

Formula for Yield to Maturity Here is a yield to maturity formula to estimate the yield to maturity since the yield to maturity computation is somewhat complex. Yield to Maturity (YTM) is calculated as (C+ (F-P)/n)/(F+P)/2. Bond Coupon Rate, or C. F is the bond par value.

What is the yield to maturity?

Despite the fact that it is expressed as such an annual rate, the maturity yield is considered a long-term bond yield.. It is, therefore, the internal rate of return (IRR) of a bond investment assuming the investor retains the bond to maturity, with all scheduled payments made and reinvested at the same pace.

What is the difference between the yield to maturity and indeed the internal rate of return?

Yield to maturity. IRR and yield to maturity are most different because the latter refers to investments that have already been made. Yield to maturity, or YTM, is a term used to determine an investment's yield based on its current market price (typically a bond or other fixed income security).

According to the given data:

for 1000 FV, 18 N, -300 PV

CPT I/Y = YTM = 6.92%

the maturity yields on an 18-year, zero-coupon bond selling for 30% of face value = 6.92%