Answer:
8.5 years
Explanation:
The first point that is worthy of note here is that the bond's interest is paid on a semiannual basis , hence, the number of semiannual periods before maturity is computed below using Excel nper function:
=nper(rate,pmt,-pv,fv)
rate=semiannual yield to maturity=7.52%*6/12=3.76%
pmt=semiannual coupon=face value*coupon rate*6/12=$1000*8%*6/12=40
pv=current market price=$1,029.75
fv=face value=$1000
=nper(3.76%,40,-1029.75,1000)
nper=17
number of years until maturity=17/2=8.5 years
