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Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest semi annually and has 16 years
Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest semi annually and has 16 years remaining to its maturity date.
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If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bond sell for today?
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If the required return were at 12% instead of 10%, what would the current value of Complex Systems bond be? Contrast this finding with your findings in part a) and explain. (please solve this one, I have already math 1)
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