You just learned that a well-established company will issue a bond with a maturity of 100 years.

Question:

You just learned that a well-established company will issue a bond with a of 100 years. The bond appears to be a good deal because it yields 8.5 percent. Assuming that the inflation rate stays at 4 percent, what is the bond's real rate of return today? If you were looking for a bond to purchase and hold for several years, would you buy this bond? Explain your answer in terms of future inflation projections and the length of the bond's 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...