Question: Basic bond valuation Complex Systems has an outstanding issue of $ 1 , 0 0 0 - par - value bonds with a 9 %

Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a9% coupon interest rate. The issue pays interest annually and has 14 years remaining to its maturity date.
a.If bonds of similar risk are currently earning a rate of return of 8%, how much should the Complex Systems bond sell for today?
b.Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond.
c.If the required return is 9% instead, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss.

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