Question: Scenario: A company, example (Disney), is about to issue a new bond and is determining the interest rate it should offer to bond investors. The

Scenario: A company, example (Disney), is about to issue a new bond and is determining the interest rate it should offer to bond investors. The company just reported record earnings and cash flow for the past fiscal year.

questions:

a. Does this suggest you should offer a higher bond interest rate or a lower bond interest rate?

b. Why?

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