Assignment 2: Lecture Exercise on Bond Valuation: 1. Complex System has an outstanding issue of $1,000 par value bonds with a 12% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bonds sell for today? b. If the required return were at 12% instead of 10% what would the current value of Complex System's bond be? Contrast this finding with your findings in part (a). 2. The Salem Company bond currently sells for $955, has a 12% coupon interest rate and a $1,000 par value, pays interest annually, and has 15 years to maturity. Calculate the yield to maturity (YTM) on this bond. 4. Stone Sour Corp. issued 20-year bonds two years ago at a coupon rate of 7.1%. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM