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What is its yield to maturity in this situation

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Reference no: EM13972510

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.

a. What is the bond's yield to maturity?

b. Now, assume that the bond has semiannual coupon payments. What is its yield to maturity in this situation? 

Reference no: EM13972510

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