I'm quite confused regarding the computation of a YTM.

I got a Portfolio of Single Loans 30Y(like a MBS) which are not traded and hence do not have a market price. Now I want to compute the YTM in the usual manner but as far as I know in order to do so I need a (market) price, which does not exist in my case. The only price I could get is the Present Value of the Mortgage?




Yes, you need a market price to compute the yield to maturity. The YTM is just another way of expressing price that puts different bonds (e.g. with different maturities or coupon rates) onto something approaching the same footing. Since it is a transformation of price, you can't calculate it without knowing the price.


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