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Please show exact calculation. Not just financial calculator inputs P6-15 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12%
Please show exact calculation. Not just financial calculator inputs
P6-15 Basic bond valuation Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon rate. The issue pays interest annually and has 16 years remaining to its maturity date. a. If bonds of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bonds sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon rate on the Complex Systems bonds. c. If the required return were at 12% instead of 10%, what would the current value of Complex Systems' bonds be? Contrast this finding with your findings in part a and discussStep by Step Solution
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