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Basie bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 11% coupon Interest rate. The issue pays interest annually and has

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Basie bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 11% coupon Interest rate. The issue pays interest annually and has 14 years remaining to its maturity date. a. It bonds of similar risk are currently earning a rate of return of 7%, how much should the Complex Systems bond soll 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 e the required retum were at 11% instead of 7%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in porta and discuss

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