General Mills has a $1000 par value, 12 year bond outstanding with annual coupon rate of 3.60%

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General Mills has a $1000 par value, 12 year bond outstanding with annual coupon rate of 3.60% per year, paid semiannually. Market interest rates on similar bonds are 12.70%. Calculate the bond price today.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Posted Date: Apr 26, 2024 09:07 AM

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General Mills has a $1000 par value, 12 year bond outstanding with annual coupon rate of 3.60%

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To calculate the bond price today we can use the present value formula for a bonds cash flows Bond P... View the full answer

Fixed Income Analysis

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