Answer:
YTM of the bond is 5.82%
Explanation:
The yield to maturity can be calculated using the rate formula in excel ,given as =rate( nper,pmt,-pv,fv)
nper is the number of times during the bond life coupon interest would be paid,which is 16 years multiplied by 2=32
pmt is the semi annual payment of the bond which is 5.8%*$1000/2=$29
pv is the current price of the bond $997.27
fv is the face value of the bond which is $1000
=rate(32,29,-997.27,1000)
rate=2.91%
that is semi-annual yield to maturity
annual yield is 2.91%*2=5.82%
