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Your firm has narrowed down its investment selection to two bonds. One is a seasoned issue of General Mills ( GIS ) , which originally
Your firm has narrowed down its investment selection to two bonds. One is a seasoned issue of General Mills GIS which originally was a year bond with a coupon rate that was issued years ago. The other is a newly issued year bond of WK Kellogg KLG that carries a coupon rate of Both bonds have a face value of $ Assume GIS and KLG carry the same debt rating. a pts What is the price of each bond today? b pts Your firm strongly believes that interest rates are set to rise significantly in the nearterm. Your boss tells you to assume interest rates will rise to in your analysis. Which bond would you recommend for investment given your firms outlook for interest rates and why?
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