Question: 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 annualy and has

 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value

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 annualy and has 17 years remaining to its maturity date. 1. W bonds of simlar risk are currently earning a rate of return of 11% 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. W the required return were at 12% Instead of 11%, what would the current value of Complex Systers' bond be? Contrast this finding with your findings in part a and discuss . I bonds of similar risk are currently eaming a rate of return of 11%, the Complex Systems bond should sell today fot $]{Round to the nearest cent) b. Describe the tuo possible reasons why the rate on similar-risk bonds below the coupon intorest rate on the Complex Systems bond. (Select the best answer below) firm O Sinca Complex Systeme bonds were sued, there may have been a ship in the supply-demand relationship for money or a change in the risk towards the 08. Since Coroplex Systems bonds were laund, there may have been a change in the number of bonda avalable or a change in the coupon interest rate OC. Since Complex Systeme bonds were loved, there may have been a change in the supply demand relationship for money or a sain in the restoranides OD. Seice Complex Systems bonds were inued, there may have been in the supply-domand relationship for the product or a change in the makers cod man ww123 de secrete Conclusione bond would be * Round www.cond) towards the firm When them with the bond CO you)

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