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.
Required:
Question 1: What is the bond's yield to maturity?
Question 2: Now, assume that the bond has semiannual coupon payments. What is its yield to maturity in this situation?
Note: Give you opinion citing relevant ethical principles.