Question: Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon interest rate. The issue pays interest annually and has

Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon interest rate. The issue pays interest annually and has 18 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 7%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar tisk bonds is below the coupon interest rate on the Complex Systems bond. c. If the required return were at 15% instead of 7%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss (Round to the nearest cent) a. bonds of similar risk are currently earning a rate of return of 7%, the Complex Systems bond should sell today for

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