Why Do Corporations Issue 100-Year Bonds,knowing That Interest Rate Risk

question 11

Essay

Why do corporations issue 100-year bonds,knowing that interest rate risk is highest for very long-term bonds? How does the interest rate risk affect the issuer?

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Definitions:

Defines Methods

Describes how functions or procedures are specified or outlined within classes or interfaces in programming.

Container

An object used to hold and organize multiple elements, typically allowing for storage, retrieval, and manipulation.

Superclass

The class from which a subclass inherits features such as methods and variables in object-oriented programming.

GUI

Stands for Graphical User Interface, a visual way of interacting with computers using items such as windows, icons, and buttons, opposed to text-based interfaces.