Answer:
YTM is 7.43%
Explanation:
The yield to maturity of a bond can be computed using the rate formula in excel,which is given below:
=rate(nper,pmt,-pv,fv)
the nper is the number of coupon interest the bond would pay before it is redeemed at maturity starting from ,which is 15 years multiplied by 2=30
the pmt is the semiannual coupon payable by the bond,which is $1000*9.1%/2=$45.5
the pv is the price of the bond which is 115%*$1000=$1150
the fv is the face value of the bond at $1000
=rate(30,45.5,-1150,1000)=3.715%
The rate of 3.715% is a semi annual rate
annual rate 7.43%(3.715%*2)
