Bond analysis-mcdonald corporation

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Bond Analysis - McDonald's Corporation (MCD)

Your task is to analyse one of the firm's outstanding bonds. 

First, compute the credit spread of this bond, by calculating the yield-to-maturity on this bond, and comparing it with the yield on Treasury bonds of comparable duration.

Second, estimate the bond's price one year from now (assuming that interest rates will remain constant), and comment on the reason behind the expected price change (if any) from the current price of the bond. 

Finally, explain which credit rating you expect your company to receive from the credit rating agencies, based on your analysis of the company bond, explain why. 

Reference no: EM133276115

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