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Basic bond valuation Complex Systems has an outstanding issue of $1,000 par-value bonds with a 14% coupon interest rate. These pays interest annusly and has

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Basic bond valuation Complex Systems has an outstanding issue of $1,000 par-value bonds with a 14% coupon interest rate. These pays interest annusly and has 17 years remaining to its maturity date a. If bonds of similar risk are currently earning a rate of retum of 12%. 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 14% instead of 12%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in parta and discuss a. bonds of similar risk are currently earning a rate of return of 12%, the Complex Systems bond should sell today for (Round to the nearestent) b. Describe the two possible reasons why the rate on similar-risk bonde is below the coupon interest rate on the Complex Systems bond. (Select the best answer below) O A Snce 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 change in the supply-demand relationship for money or a shit in the investors'attudes towards the firm. OC. Since Complex Systems' bonds were issued, there may have been a shit in the supply-demand relationship for their product or a change in the risk towards for OD. 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 fimm c. If the required retum were at 14% instead of 12%, the current value of Complex Systems' bond would be es). Round to the nearest cont) When the required return is equal to the coupon rate, the bond value is the par value. In contrast in part above, if the required return is less than the coupon rate the bond wil selata greater than par). (Select the best answers from the drop-down menus) value will be

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