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Monday, November 15, 2010

*Really* Long Term Bonds

Low interest rates have made "long-term bonds" attractive. Coca-Cola and Disney have previously issued 100 year bonds. But, that is nothing:

From A Study of Corporation Security by Arthur Stone Dewing:

The extreme longevity of a bond was presumed to have been reached when the west Shore Railroad placed on its lines a mortgage due in the year 2361. This is exceeded, however, by the farcical date of maturity of the Elmira and Williamsport 5% Income Bond of [the year] 2862

This Investopedia Article explains the merits of long-term bonds

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