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Basic Bond Valuation: Complex Systems has an outstanding issue of $ 1 , 0 0 0 - par - value bonds with a 1 0
Basic Bond Valuation: Complex Systems has an outstanding issue of $parvalue bonds with a coupon interest rate. The issue pays interest annually and has years remaining to its maturity date. A If bonds of similar risk are currently earning a rate of return, how much should the Complex Systems bond sell for today? B Describe the two possible reasons why the rate on similarrisk bonds is below the coupon interest rate on the Complex Systems bond. C If the required return were at instead of what would the current value of Complex Systems' bond be Contrast this finding with your findings in part A and discuss.
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