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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

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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 18 years remaining to its maturity date a. lf bonds of similar risk are currently earing a rate of return 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 were at 9% instead of 7%, what would be the current value of Complex Systems' bond? Contrast this finding with your findings in part a and discuss. f bonds of similar risk are currently earning a rate of return of 7%, the Complex Systems bond should sell today for $ . (Round to the nearest cent.)

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