Whats the nominal yield of an index-linked bond if we purchase the bond on the 1st of April 2019 for 145.81 and was issued on the 26th July 2011 for 100 nominal with a 0.75% coupon rate? Assume we hold the bond until redemption/maturity. The bond matures on the 22nd March 2034 and has semi annual interest payments on the 22nd March and 22nd September. We are supposed to use an equation of value to solve for v and then solve for i (which is nominal yield of the index-linked bond).

The equation of value we must use is: 0 = -P0 + (the sum of) c*N*(R(t)/R(t0))*v^(t) + (c+1)*N*(R(t)/R(t0))*v^(tn)

where:

R(t) = 280.225

R(t0) = 231.3

c is the coupon rate

v=1/(1+i)