6 7 Tidewater Home Health Care, Inc., has a bond issue outstanding with nine years remaining to 8 maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. The 9 current market price of the bond is $1,251.22. 10 a. What is the bond current yield? What is the bond's yield to maturity? 11 b. Now, assume that the bond has semiannual coupon payments. What is its yield to maturity in this 12 situation? 13 14 ANSWER 15 a. 16 Years to maturity nper 17 Coupon rate 18 Par value fv 19 Annual coupon payment pmt 20 Current price pv 21 Current yield 22 Yield to maturity 23 24 b. 25 Semiannual periods to maturity nper 26 Coupon rate 27 Par value fv 28 Semiannual coupon payment pmt 29 Current price pv 30 31 Yield to maturity 32 rate rate