Click your browser's BACK button to return to previous screen
Using a Texas Instruments BA II:
First, set the payments to monthly:
press [2nd] [I/Y] [2] [enter] (this sets the payments to 2 per year)
press [2nd] [CPT] (to quit)
Now, compute the annual yield to maturity:
Input the facts we know:
9750 [+/-] [PV] (the PV is the bond price, which is negative since you pay it)
300 [PMT] (the 6 month coupon payments on the bond)
10000 [FV] (the face value payment on the bond)
4 [N] (there are 4 periods--2 years x 2 6-month periods per year)
ask the calculator to computer what we do not know:
[CPT] [I/Y]
the screen pauses for a second, then reads, I/Y = 7.367193652 So the yield to maturity is 7.37%
IMPORTANT: If you use this calculator for other courses, change the payments setting back to what you typically use. Also, press [2nd] [CE/C] to clear the memory of values for N, PV, FV, PMT, and I/Y.