Question: why by trial and error only? II. Finding the yield on a bond Given a bond value, coupon, time to maturity, and face value, it

why by trial and error only?

II. Finding the yield on a bond Given a bond value, coupon, time to maturity, and face value, it is possible to find the implicit discount rate, or yield to maturity, by trial and error only. To do this, try different discount rates in the preceding formula until the calculated bond value equals the given bond value. Remember that increasing the rate decreases the bond value

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