Enterprise, Inc. bonds have an annual coupon rate of

16

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

12

years. Their par value is

$1,000.

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

15

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.)