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Problem 2: Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 11years

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Problem 2: Complex Systems has an outstanding issue of $1,000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 11years remaining to its maturity date. If bonds of similar risk are currently earning a rate of return of 7%, how much should the Complex Systems bond sell for today? a. b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond. If the required return were at 12% instead of 7%, what would be the current value of Complex Systems' bond? Contrast this finding with your findings in part a and discuss. c

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