Taking an introductory investment course, was following up on bond yields.
I thought the yield is calculated as follows (sorry for some reason LaTex formatting doesn't work - so inserting an image):
I am so very confused with all the terms. I was trying to unpack this simple example
...For example, if a 10-year T-note with a face value of $1,000 is auctioned off at a yield of 3%, a subsequent drop in its market value to $974.80 will cause the yield to rise to 3.3%, since the Treasury will still be making the $30 ($1,000 x .03) annual coupon payments as well as the $1,000 principal repayment...
Now if I got the formula correct, subsequent drop in market price would cause yield to increase to 3.07% not 3.3%.