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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 14 years. Their par value is $1,000. If the market's
required yield to maturity on a comparable-risk bond is 13 percent, what is the value of the
bond? What is its value if the interest is paid annually?

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Enterprise- Inc- bonds have an annual coupon rate of 11 percent- The i.pdf

  • 1. Enterprise, Inc. bonds have an annual coupon rate of 11 percent. The interest is paid semiannually and the bonds mature in 14 years. Their par value is $1,000. If the market's required yield to maturity on a comparable-risk bond is 13 percent, what is the value of the bond? What is its value if the interest is paid annually?