Hi All,

If I look at securities quoted on the NZDX (I'll use BNZ080 as an example), they quote the unit price and the yield:

http://www.nzx.com/markets/NZDX/bnz080

Can anyone explain exactly how the yield is calculated?

Using the numbers on that page at the time of posting they show:

Date = 6 Nov 2009
Sell per $100 = $107.691
Nominal Interest = 8.42%
Interest Paid = 6 times a year
Next Interest = 15 Dec 2009
Maturity = 15 Jun 2017

Yield on Sell = 6.600% (presumably the Yield to Maturity?)


Can anyone explain how to get the 6.600% from the above data?


A worked example using the above data would be most helpful if possible. In an attached excel workbook would be sublime!


Thanks,

Alan.