<ul><li>Moody’s downgraded U.S. sovereign debt from AAA to AA+, pushing 20-year and 30-year bond yields over 5%.</li><li>Newton-Raphson method is being used to calculate bond yields amidst economic uncertainty and fears of recession.</li><li>Bond yield is the effective annual interest rate of a bond, representing the benefit for buyers and the cost for sellers.</li><li>The method involves finding the root of a function using iterative guesses to determine bond yields like the 4.34% yield on a U.S. Treasury bond.</li></ul>

Calculating Bond Yields With the Newton-Raphson Method

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