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Need to check and see if my answer is right. A 30-year 6% semi-annual coupon bond...

Need to check and see if my answer is right. A 30-year 6% semi-annual coupon bond has a PAR value of $1000 and a current price of 103.2121% of PAR. If the tenor of the bond is 14 years, what must the yield of maturity be?

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Answer #1

time (t)= 14 years
Par Value = 1000
Price of Bond = 103.2121%*1000 = 1032.121
Coupon Half yearly = 6%*1000/2 =30
Price = Coupon/(1+YTM/2)2t + Par Value /(1+YTM/2)2t =  30/(1+YTM/2)2t + 1000 /(1+YTM/2)2*14
YTM = 5.66%
We use excel sheet to get exact YTM

A B C D E G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Price of Bond Coupon Coupon +Face Value
1 -1032.121 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 1030
YTM/2 USING IRR function of EXcel 2.83% IRR(A1:AD1)
IRR=YTM 5.66% (2.83%*2)
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