Question
1.On April 23, 2020, S&P Global downgraded Walt Disney's credit rating to A- from the previous A. Please explain how this affects Disney's bond price
1.On April 23, 2020, S&P Global downgraded Walt Disney's credit rating to A- from the previous A. Please explain how this affects Disney's bond price and bond YTM and why. (2 points)
2.Please rank the duration of the following bonds and explain the reason: (4 points)
Bond A: 5-year bond, coupon rate of 3% selling at par
Bond B: 5-year bond, coupon rate of 3% selling at discount
Bond C: 10-year bond, coupon rate of 2% selling at par
Bond D: 10-year bond, coupon rate of 2% selling at premium
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
