When using a ﬁnancial calculator to compute the yield-to-maturity of a semi-annual coupon bond, the:

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When using a financial calculator to compute the yield-to-maturity of a semi-annual coupon bond, the face value is the future value that is paid at maturity. The coupon rate is not the discount rate, but rather the rate at which periodic interest payments are made. The number of payments is twice the number of years to maturity since there are two payments per year. The call premium is not relevant to the calculation of yield-to-maturity. The market price is the present value of the bond's future cash flows, not the future value.

When Using a ﬁNancial Calculator to Compute the Yield-To-Maturity of a Semi-Annual