Question

# calculate the yield to maturity on a loan for a \$12,000 that requires month payments of...

calculate the yield to maturity on a loan for a \$12,000 that requires month payments of \$127.28 for 10 years.

**please show how you get this**

You can calculate it through I/Y function on a financial calculator

Insert N = 10 x 12 = 120, PMT = 127.28, PV = -12,000, FV = 0

=> Compute I/Y = 0.42% (monthly)

Annualized YTM = 0.42% x 12 = 5.00%

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