Question: please help with a. through c. the best you can thank you!! Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-valuo bonds with
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-valuo bonds with a 9% 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 8%, how much should the Complex Systoms bond soll 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 retum were at 9% instead of 8%, what would the current value of Complex Systems' bond bo? Contrast this finding with your findings in part a and discuss . a. If bonds of similar risk are currently earning a rate of return of 8%, the Complex Systems bond should sell today for nearest cont.) (Round to the
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