Enterprise, Inc. bonds have an annual coupon rate of 14 percent. The interest is paid semiannually...

Enterprise, Inc. bonds have an annual coupon rate of 14 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 9 percent, what is the value of the bond? What is its value if the interest is paid annually?

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

Expert Solution

Calc:

Where,

rate is periodic YTM,

nper is periods to maturity

pmt is payment per period

fv is redemption amount of bond

jeff jeffy answered 2 years ago

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