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Basic bond valuation Complex Systems has an outstanding issue of 51.000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has

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Basic bond valuation Complex Systems has an outstanding issue of 51.000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 10%, how much should the Complex Systems bond sell for today? b. Descnbe 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 12% instead of 10% what would the current value of Complex Systems bond be? Contrast this finding with your findings in part a and discuss a. bonds of similar risk are currently earning a rate of retum of 10%, the Complex Systems bond should sell today for (Round to the nearest cent.)

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