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Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually and the bonds mature in 11 years. Their par

Enterprise, Inc. bonds have an annual coupon rate of

11

percent. The interest is paid semiannually and the bonds mature in

11

years. Their par value is

$1,000.

If the market's required yield to maturity on a comparable-risk bond is

16

percent, what is the value of the bond? What is its value if the interest is paid annually?

Question content area bottom

Part 1

a. The value of the Enterprise bonds if the interest is paid semiannually is

$enter your response here.

(Round to the nearest cent.)

Part 2

b.

The

value of the Enterprise bonds if the interest is paid annually is

$enter your response here.

(Round to the nearest cent.)

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