Computation of Yield to Maturity:

Yield to Maturity = (Coupon Amount + (Face Value-Bond Price)/n)/((Face Value + Bond Price)/2)

Here,

Coupon Amount = $1,000*6.5% = $65

Face Value = $1,000

Bond Price = $1,035.25

n = 18 years 

Yield to Maturity = ($65 + ($1000-$1035.25)/18)/((1000+1035.25)/2)

= ($65 + (-1.9583))/$1017.625

= $63.04/$1,017.625

Yield to Maturity = 6.19%