Question: Problem 2: 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 11

Problem 2: 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 11 years remaining to its maturity date. ait 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-risk bonds is below the coupon interest rate on the Complex Systems bond (to help you answer, use page 249 section "Required Returns and Bond Values") If the required return were at 12% instead of 7%, what would be the current value of Complex Systems bond? Contrast this finding with your findings in part a and discuss C

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