Question
In the table above, you are given two issues of 100 year bonds: DIS 7.55% due 07/15/93 (from Case 3) and KO 7.375% due 07/29/93.
In the table above, you are given two issues of 100 year bonds: DIS 7.55% due 07/15/93 (from Case 3) and KO 7.375% due 07/29/93. By way of background, Coca Cola also issued a 100 year bond based on the success of the Disney offering back in 1993. However, the transactions were structured differently.Please explain in words (no calculations required) why the duration of the Disney bond is much lower than the duration of the Coca Cola bond. Frame your response with regard to investor expectations for each of these bonds. Hint: read Case 3 and focus on the documentation associated with the Disney bonds
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