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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 $1,000-par-value bonds with a 10% coupon interest rate. The issue pays interest annually and has 8 years remaining to its maturity date. A. If bonds of similar risk are currently earning a 8% rate of return, 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 10% instead of 8%, 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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