Answer:
YTM = 3.094%
Explanation:
If you can't calculate the YTM using excel or a financial calcualtor, you can do it by hand using the approximation formula:
[tex]YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}[/tex]
C = interest payment = 1,000 x 6%/2 = 30
F = face value = 1,000
P = 985,63
n = payment periods = 10 years x 2 payment per year
[tex]YTM = \frac{30+ \frac{1000-958.63}{20 }}{\frac{1000+958.63}{2}}[/tex]
YTM = 3.094%
Notice, this YTM is an approximation
