Answer:
YTM 6.681%
Step-by-step explanation:
The YTM be the rate at wich we discount the coupon payment and maturity to arrive at hte curernt price of the bonds.
he coupon payment present valeu will be of a single annuity

C 40.000 (1,000 x 8%/2)
time 28 (14 years x 2 payment er year)
YTM
Then, the maturity will be a lump sum:
Maturity 1,000.00
time 28.00
This two at he YTM should give the market price of 1,118.74
we write on excel on A1 as follow
=PV(A2;28;40)+100/power(1+A2;28)
Then, on A2 wetpe a numebr between 0 and 1
last, we use goal seek to get the value of 1,118.74 changing A2 to gethte YTM
0.033405627
Now, this will be the semiannual rate so we multiply by 2 and get the annualized yield to maturity at 6.681%