Companies are locking in current low interest rates for future bond sales, hoping to benefit from cheap refinancing costs when their debt comes due. As finance chiefs and treasurers struggle to project an outlook for the coming quarter in the wake of the coronavirus pandemic, being able to quantify the cost of borrowing in the coming years can guide them as they look at their companies debt-maturity schedule. Businesses, including online marketplace eBay Inc., energy producer Dominion Energy Inc. and animal-health company Zoetis Inc. disclosed in recent weeks that they entered into such rate locks on future debtcalled pre-issuance hedgeswith banks and other financial institutions. While the banks earn a fee for their service, companies potentially save money if rates go up in the meantime. Companies Lock In Low Rates for Future Debt - WSJ.pdf

Please answer these questions:

• According to the article, what is a "pre-issuance hedge"?
• Why would a CFO be minded to enter into a "pre-issuance hedge"?
• Based on the article, how are "pre-issuance hedges" accounted for on the income statement?
• How does a "pre-issuance hedge" differ from a swap?