Basic bond valuation Complex Systems has an outstanding issue of $1, 000-par-value bonds with a13%

coupon interest rate. The issue pays interest annually and has 19years remaining to its maturity date.

a.If bonds of similar risk are currently earning a rate of return of 9%, 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.If the required return were at 13% instead of 9%, what would be the current value of Complex Systems' bond? 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 9%, the Complex Systems bond should sell today for$___________. (Round to the nearest cent)