Ford Motor Company has issued bonds with a maturity date of November 1, 2046, that have a

Question:

Ford Motor Company has issued bonds with a maturity date of November 1, 2046, that have a coupon rate of 7.40%, and it has issued 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?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...