Complex Systems has an outstanding issue of $1,000 par-value bonds with a 8% coupon interest rate. The issue pays interest annually and has 18 years remaining to its maturity date.

a. If bonds of similar risk are currently earning a 6% rate of return, how much should the Complex Systems bond sell for today?

b. Describe the two possible reasons why similar-risk bonds are currently earning a return below the coupon interest rate on the Complex Systems bond.

c. If the required return were at 8% instead of 6%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss