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YTM calculations use the standard future value-present value formula

I don't believe the computation is quite that easy. Let me rephrase the problem somewhat differently using a concrete example. Suppose we have a $1000.00 10-year government bond with a coupon rate of 8% that pays interest semi-annually. The price of this 10-year bond is $1102.85. What is the yield-to-maturity?

The yield-to-maturity computation is complicated because you have to factor in (1) the $102.85 capital loss you absorb since you only receive $1000.00 face value at maturity, and (2) the future value of the $40.00 interest payments you receive semi-annually are discounted at the YTM rate.

The answer to this problem, by the way, is 6.58%, but I'm trying to figure out how to compute this value in an empirical formula.
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