Question: Basic bond valuation Complex Systems has an outstanding issue of 51,000 -par-value bonds with a 16% coupon interest rate The issue pays interest annually and

 Basic bond valuation Complex Systems has an outstanding issue of 51,000

Basic bond valuation Complex Systems has an outstanding issue of 51,000 -par-value bonds with a 16% coupon interest rate The issue pays interest annually and has 15 years remaining to its maturity date a. If bonds of simeat risk ate currently eaming a rate of return of 15%, how much should the Complex Systems bond sell for today? b. Describe the two posshble reasons why the rate on simiar-riak bonds is below the coupon interest rate on the Complex Systems bond. c. If the required retum is 16% insteod, what would the current value of Complex Systems' bend be? Contrast this finding with your findings in part a and discusa. a. If bonds of zindarilsk are curtently earning a rale of return of 15%, the Complex Systens bend should seill today for (Round to the neareat cent)

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