Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 9% coupon interest rate. The issue pays interest annually and has 12 years remaining to its maturity date a. If bonds of similar risk are currently earning a rate of retum 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 c. If the required return is 9% instead, what would the current value of Complex Systems bond be? Contrast this finding with your findings in paita and discuss a. If bonds of similar risk are currently eaming a rate of return of 7% the Complex Systems bond should sell today for Round to the nearest cent.) b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond (Select the best answer below) OA. Since Complex Systems' bonds were issued, there may have been a change in the number of bonds available or a change in the coupon interest rate OB. Since Complex Systems' bonds were issued, there may have been a shift in the supply-demand relationship for their product or a change in the risk towards loans OC. Since Complex Systems bonds were issued, there may have been a shift in the supply-demand relationship for money or a change in the risk towards the firm OD. Since Complex Systems bonds were issued, there may have been a change in the supply-demand relationship for money or a shift in the investors' attitudes towards the firm c. If the required retum were at 9% instead of 7%, the current value of Complex Systems bond would be $ (Round to the nearest cent) When the required return is equal to the couson rate the bond value is the car value in contrast in carta above if the required return is less than the coupon rate the bond will sell at a its value will Show work Time Remaining: 01:33:01 View instructor tip Next