Companies A and B issued $10$ year, $8\%$ semi$-$annual coupon bonds two years ago. Yesterday, company A reported its financial statements, and analysts' consensus is that because lower than expected sales, the company may struggle to pay the next coupon, due in two weeks.

The price of A should increase because the company may declare default.

The discount rate of A should increase due to higher default risk.

The coupon rate of B will decrease to match the yield of A$.$

Both companies will be unaffected by the news.

None of the above.