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(15%) Your firm has narrowed down its investment selection to two bonds. One is a seasoned issue of Kraft Heinz (KHC), which originally was a

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(15%) Your firm has narrowed down its investment selection to two bonds. One is a seasoned issue of Kraft Heinz (KHC), which originally was a 25-year bond with a 6% coupon rate that was issued 20 years ago. The other is a newly issued 25 -year bond of General Mills (GIS) that carries a coupon rate of 6%. Both bonds have a face value of $1,000. Assume KHC and GIS carry the same debt rating. a. ( 9 pts) What is the price of each bond today? b. (6 pts) Your firm strongly believes that interest rates are set to rise significantly in the near-term. Your boss tells you to assume interest rates will rise to 10% in your analysis. Which bond would you recommend for investment given your firm's outlook for interest rates and why

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