1. Based on their decision to issue 100 year bonds, what did Disney expect about future interest rates?

a. They would increase

b. They would decrease

c. Their expectations about future interest rates should not affect their decision to issue a bond

2. From an investors perspective, 100-year callable (at face value) bond is more attractive than a 100-year non-callable bond.

True

False

3. Why do the Disney bonds have a higher yield than 30-year U.S. Treasury bonds?

a. Because this was a public relations event

b. They were trying to generate "goodwill" with bond investors

c. They were less risky than the government

d. They were more risky than the government