Discuss the below in detail:
Q: Complex Systems has an outstanding issue of $1000-par-value bonds with a 12% coupon interest rate. The issue pays interest annually and has 16 years remaining to its maturity date.
a) If bonds of similar risk are currently earning a 10% rate of return, how much should the complex system bond sell for today?
b) Describe the 2 possible reason s why the rate on similar-risk bond is below the coupon interset rate on the Complex System bond.
c) If the required return were at 12% instead of 10%, what would the current value of Complex System bond be? Contrast this findings with your finds in the part a and discuss.