can anyone tell me the formula for converting a bond futures contract
price (say the 5 yr treasury "FVM05" now trading about 108.2) into a
yield.  I would want to know how to do this for any bond assuming you
know coupon and price.

Here are websites with formulas for "current yield" and "yield to maturity."
I have also included a link to a site with a calculator for
determining "yield to maturity" since the calculation is somewhat
complicated.

For current yield, simply take the coupon rate times the par value,
divide by the price, and multiply by 100%.

"Advanced Bond Concepts: The Price-Yield Relationship" Investopedia.com 
http://www.investopedia.com/university/advancedbond/advancedbond3.asp

To calculate yield to maturity, you iteratively solve for r in the
following equation:

"c(1 + r)-1 + c(1 + r)-2 + . . . + c(1 + r)-n + B(1 + r)-n = P  
    where 
 c = annual coupon payment (in dollars, not a percent) 
 n = number of years to maturity 
 B = par value 
 P = purchase price"

"Bond Yield-to-Maturity" Moneychimp
http://www.moneychimp.com/articles/finworks/fmbondytm.htm

An online calculator that calculates both current yield and yield to
maturity for you is located at "Bond Yield Calculator" Moneychimp
http://www.moneychimp.com/calculator/bond_yield_calculator.htm

Sincerely,

Wonko

Search Terms:  calculate bond yield coupon price

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Request for Answer Clarification by wlbsr-ga on 03 Jun 2005 03:16 PDT

right now the five year futures contract is trading at 109.15.  I
think all bond futures are 6% coupon.  what is the current yield?

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Clarification of Answer by wonko-ga on 05 Jun 2005 09:58 PDT

At a current price of $109.15, par value of $100 (see "Understanding
U.S. Government Securities Quotes" Federal Reserve Bank of New York
http://www.ny.frb.org/aboutthefed/fedpoint/fed07.html), a coupon of
6%, and a maturity of 5 years, the calculator at Moneychimp I
referenced provides a current yield of 5.497%.

Sincerely,

Wonko