Question
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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