Power up your iMac with the OPTION button held and it should show the USB as a bootable device assuming it was made properly, you should then be dropped into a place where you can format your HD and begin the installation..
Which version iMac? That version of the OS is pretty old, and if the iMac is that old, it may not support Sierra. Click on the in the upper left, then About this Mac and let us know what it says is the kind of iMac you have.
Can you post what you got when you did what I said to do in Post #3? The oldest iMac that can support Sierra is the Late-2009, but your processor was not listed at that speed for the Late-2009 version, just the Early-2009, which is not supported for Sierra. Save yourself some trouble and first check to see if Sierra will even run on that machine.
More info needed about the precise model number. There are two 2.93GHz models, a 2009 which will only run up to El Capitan, and a 2010 i7 model which will handle Sierra. Boy upgrading from Leopard? Many of your applications may not work they are that old.
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