Business, 13.12.2019 01:31 rayne40

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 14 years remaining to its maturity date.

a. if bonds of similar risk are currently earning a rate of return of 14%, 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 14%, what would the current value of complex systems' bond be? contrast this finding with your findings in part a and discuss.

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Complex systems has an outstanding issue of $1,000-par-value bonds with a 15% coupon interest rate....