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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?


Definitions:

Uniform Commercial Code

An extensive collection of regulations designed to oversee every commercial deal within the United States, aiming to make the law uniform and less complicated.

Issuance of Stocks

The process by which a company makes its shares available for sale to investors, thereby raising capital.

Article 8

A specific provision or section within a broader legal document or statute, the context of which can vary greatly depending on the document.

Free Transferability

The ability to freely transfer assets or shares from one party to another without restrictions.

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