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please solve all Basic bond valuation Complex Systems has an outstanding issue of $1,000-par value bonds with a 15% coupon interest rate The issue pays
please solve all
Basic bond valuation Complex Systems has an outstanding issue of $1,000-par value bonds with a 15% coupon interest rate The issue pays interest annually and has 11 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 15% instead of 8%, what would the current value of Complex Systems' bond be? 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 (Round to the nearest cent) $Step by Step Solution
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