Why would a company issue 100-year bond or hold 100-year debt as both CN and CP do? O Investors might view the ultra-long duration as a way to lock-in to a long-term positive return, even if a small one. O Issuing ultra-long debt may allow companies to 'lock-in' interest rates while they are at low levels. O All of the above may lead a company to consider and issue what's been termed 'century bonds' or 100 year bonds. O Such a lengthy term can instill confidence in the bond market that the company will be around for another century.
Why would a company issue 100-year bond or hold 100-year debt as both CN and CP do? O Investors might view the ultra-long duration as a way to lock-in to a long-term positive return, even if a small one. O Issuing ultra-long debt may allow companies to 'lock-in' interest rates while they are at low levels. O All of the above may lead a company to consider and issue what's been termed 'century bonds' or 100 year bonds. O Such a lengthy term can instill confidence in the bond market that the company will be around for another century.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question

Transcribed Image Text:Why would a company issue 100-year bond or hold 100-year debt as both CN and CP do?
O Investors might view the ultra-long duration as a way to lock-in to a long-term positive return, even if a small
one.
O Issuing ultra-long debt may allow companies to 'lock-in' interest rates while they are at low levels.
O All of the above may lead a company to consider and issue what's been termed 'century bonds' or 100 year
bonds.
O Such a lengthy term can instill confidence in the bond market that the company will be around for another
century.
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