Good day,

I think I did something wrong here and cannot figure it out, please help.

2-year 6% coupon bond

Purchase price ($xxxx.xx) ?

Time 1 cash flow +60.00

Time 2 cash flow +1060.00

Yield to maturity (xx.xx%) 5.50%

If I use the finanical calcultor, the answer is 1063.1387 (PV_price = PV_pmt(60,5.5%,2) + PV_fv(1060,5.5%,2)

but if I sub the -1063.1387 into the equation as PV_price to cross check the YTM, it will not give me 5.5%.

or if I try to calculate the PV manually, using formula PMT/(1+YTM)ⁿ + FV/(1+YTM)ⁿ which is 60/1.055² + 1060/1.055² =1006.27

Thanks

Charles