Question: I've already solved part B so I do not need that part done. PART C: When the required return is equal to the coupon rate,

 I've already solved part B so I do not need that

I've already solved part B so I do not need that part done.

PART C: When the required return is equal to the coupon rate, the bond value is (less than, greater than, or equal to?) the par value. In contrast in part a above, if the required return is less than the coupon rate, the bond will sell at a (discount or premium?)

Basic bond valuation Complex Systems 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 rate of return of 9%, 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 12% instead of 9%, 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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