Basic bond valuation Complex Systems has an outstanding issue of ( $ 1,000 )-par-value bonds with a ( 13 % ) 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 ( 11 % ), how much should the Complex Systems bond sell fo

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Basic bond valuation Complex Systems has an outstanding issue of  (  $ 1,000  )-par-value bonds with a  ( 13  %  ) 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  ( 11  %  ), 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 is  ( 13  %  ) instead, 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  ( 11  %  ), the Complex Systems bond should sell today for  (  $  ) . (Round to the nearest cent.)

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