Enterprise, Inc., bonds have a $9\mathrm{.}5\%$ coupon rate. The interest is paid semiannually and the bonds mature in eleven years. Their par value is $$1,000.$ If the market interest rate is $7\mathrm{.}4\%,$ what is the value $($price$)$ of the bond? $1,156\mathrm{.}18$

Suppos Onarket interest rates rise to $9\mathrm{.}5\%.$ What is the value of the bond?

Bonds $($Debt$)-$Characteristics and Valuation: Problems

$6-5$ Tapley Corporation's $14$ percent coupon rate, semiannual payment, $$1,000$ par value bonds mature in $30$ years. The bonds sell at a price of $$1,353\mathrm{.}54,$ and their yield curve is flat. Assuming that interest rates in the general economy are expected to re main at their current level, what is the best estimate of Tapley's simple interest rate on new bonds? THIS IS A GOOD QUESTION $-$ TAKE OUT YIELD CURVE COMMENT