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Q5. As you were walking in from the parking lot you overheard a couple of senior finance students talking about a recent class where the
Q5. As you were walking in from the parking lot you overheard a couple of senior finance students talking about a recent class where the professor told them that in the past both Walt Disney Company and Coca-Cola have issued 100-year bonds. Some countries have also issued 100-year bonds. You learned in Comm203 that interest rate risk is highest for very long-term bonds, so why would a company issue a bond like this? How would interest rate risk affect the issuer?
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