Question: Basic bond valuation Complex Systems has an outstanding issue of $1,000 par value bonds with a 11% coupon interest rate. The issue pays interest an

Basic bond valuation Complex Systems has an outstanding issue of $1,000

Basic bond valuation Complex Systems has an outstanding issue of $1,000 par value bonds with a 11% coupon interest rate. The issue pays interest an a y and has 13 years remaining to its maturity date a. If bonds of similar risk are currently earning a rate of retum 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 were at 11% instead of 8%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss. If bonds of similar risk are currently earning a rate of return of 8%, the Complex Systems bond should sell today for S|]. ( (Round to the nearest cent.) a

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