complex systems has an outstanding issue of $1,000 par value bonds with a 9% coupon interest rate. the issue pays interest annually and has 12 years remaining to its maturity date.
bonds of similar risk are currently earning a rate of return of 7% how much should complex bond sell for today.
the two possible reasons why the rate on? similar-risk bonds is below the coupon interest rate on the complex systems bond.
the required return were at 9% instead of 7% what would be the current value of complex? systems' bond? contrast this finding with your findings in part a and discuss.