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Complex Systems has an outstanding issue of $1000 -par-value bonds with a 9 % coupon interest rate. The issue pays interest annually and has 14

Complex Systems has an outstanding issue of $1000 -par-value bonds with a 9 % coupon interest rate. The issue pays interest annually and has 14 years remaining to its maturity date. a.If bonds of similar risk are currently earning a rate of return of 8 %, how much should the Complex Systems bond sell for today? b.Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond. c.If the required return were at 9 % instead of 8 %, what would be the current value of Complex Systems' bond? Contrast this finding with your findings in part a and discuss. a.If bonds of similar risk are currently earning a rate of return of 8 %, the Complex Systems bond should sell today for$nothing . (Round to the nearest cent.)

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