Disney bond price and bond ytm

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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. Please rank the duration of the following bonds and explain the reason:

  • 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

Reference no: EM132673584

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