Problem: Tidewater Home Health Care, Inc. has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. The current market price of the bond is $1,251.22.
Q1. What is the bond's yield to maturity?
Q2. Now, assume that the bond has semiannual coupon payments. What is its yield to maturity in this situation?