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Enterprise, Inc. bonds have an annual coupon rate of 15 percent. The interest is paid semiannually and the bonds mature in 10 years. Their par
Enterprise, Inc. bonds have an annual coupon rate of
15
percent. The interest is paid semiannually and the bonds mature in
10
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?
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