Petrobras is a Brazilian state oil company engulfed last year by a multibillion-dollar bribery and kickback scandal. Would global investors really lend it money for 100 years? Well, yes, they would. Bids this week for a ‘century bond’ issued by Petrobras were more than five times higher than the $2.5bn issued. 

1. Explain why the capital repayment on the century bond is currently of little value. 

2. Discuss the reasons why investors were attracted to the century bond issue.