Please solve the questions step by step manually with the formulas used. Do not use a spreadsheet or financial calculator. Please make sure that your handwriting is clear.

Problem 5: (3 Points) Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest semi annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why similar-risk bonds are currently earn-ing a return below the coupon interest rate on the Complex Systems bond. C. If the required return were at 12% instead of 10%, what would the currentvalue of Complex Systems' bond be? Contrast this finding with your findings in part a) and explain