Example: Yield on a Security Which Pays at Maturity

import com.imsl.finance.*;
import java.text.*;
import java.util.*;

public class yieldmatEx1 {

    static final DateFormat dateFormat
            = DateFormat.getDateInstance(DateFormat.SHORT, Locale.US);

    static private GregorianCalendar parse(String s) throws ParseException {
        GregorianCalendar cal = new GregorianCalendar();
        cal.setTime(dateFormat.parse(s));
        return cal;
    }

    public static void main(String args[]) throws ParseException {
        GregorianCalendar settlement = parse("8/1/85");
        GregorianCalendar maturity = parse("7/1/95");
        GregorianCalendar issue = parse("7/1/85");
        double rate = .06;
        double price = 95.40663;
        DayCountBasis dcb = DayCountBasis.BasisNASD;
        double yieldmat = Bond.yieldmat(settlement, maturity, issue, rate,
                price, dcb);
        System.out.println("The yield on a bond which pays at maturity is "
                + yieldmat);
    }
}

Output

The yield on a bond which pays at maturity is 0.06739051278091948