Re: Bonds: YTM, duration, and convexity

Better post your question in alt.math.

"DarkProtoman" <> wrote in message
news:
> How do I calculate YTM? I need to calculate it for this sort of bond:
>
> A 10yr $1000 bond w/ a 5% annual coupon is selling for $784.36. The
> current prime rate is 8.25% (I'm using the prime rate to calculate the
> bond's clean price). It's Macauly duration is 7.82yrs. It's current
> yield is 6.37%.
>
>
> How would I calculate it's YTM and it's convexity? What does duration
> and convexity actually mean? Thanks!!!! Also, why is duration in years
> instead of percent?
>