Question
US. Treasury Secretary Steven Mnuchin ... said the United States will issue 50-year bonds if there is proper demand, a moved aimed at derisking the
US. Treasury Secretary Steven Mnuchin ... said the United States will issue 50-year bonds if there is proper demand, a moved aimed at derisking the governments $22 trillion of debt and locking in low interest rates. We are going to start with 50 years, and if ... successful, well consider 100-year bonds. From an interview with Mr. Mnuchin by New York Times DealBook; quoted by Andrea Shalal for Reuters, 12 September 2019.
On 9 September 2019 the US 30-year Treasury bond rate was 2.378%.
a. Why would the US Treasury want to issue extremely long bonds, and why is it able to issue such bonds more easily than most corporations?
b. What qualities must a corporation possess in order to issue very long bonds?
c. Can you give an example(s) of a corporation issuing such bonds? (
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