No that doesn't make you a bad person! He should respect that you were honest with him about and it should show him that you really have nothing to hide by telling him the truth! The down side to telling him is this friend of yours and his that told you how he felt may cause insecurities in your relationship now that you told your boyfriend how he felt towards you! If he is an understanding trusting person than this shouldn't bother him!! Give it time!

If he wants to break up with you for being honest than you have to consider if its really worth it being together!!