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Ford Motor Company has issued bonds with a maturity date of November 1, 2046 that have a coupon rate of 7.40%, and coupon bonds with a maturity of February 15, 2047 that have a coupon rate of 9.80%.

Why would Ford issue bonds with coupons of $74 and then a little more than a year later issue bonds with coupons of $98?

Why didn't the company continue to issue bonds with the lower coupon?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92060124

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