For example in the FT this month a 10 year US bond with redemption date 05/24, coupon 2.50 has a bid price of 99.52 and a bid yield of 2.56.
Can one calculate the bid yield from the bid price, red date and coupon?
I thought that the bid yield should be the rate y at which if you discount the cash flows of (6 months, 1.25), (1 year, 1.25), ........., (10 years,101.25) at the rate of y and sum these up you should get the bid price. But I dont get this. If i take the quoted bid yield of 2.56 - I get a bond price of 99.33.
For a shorter example - a 2 year US bond with red date of 06/16, coupon 0.50 has bid price 100.02 and bid yield of 0.49.
Can someone help?