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

please help with a. through c. the best you can thank you!!
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 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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