Love you for a thousand years! Danish Co issues 1000 year bonds!

[GorillaNerd]

http://www.businessinsider.com/danish-energy-company-1000-year-bond-2017-11

there’s really not that many companies with a lot of that live that long. who the fuck invests in this shit?

http://www.slate.com/articles/business/continuously_operating/2014/10/world_s_oldest_companies_why_are_so_many_of_them_in_japan.html

http://www.onlydeadfish.co.uk/only_dead_fish/2015/09/is-the-life-expectancy-of-companies-really-shrinking.html

This song came to my head. lol. i know it aint the usual rap, but rappers dont focus on the long term.

Heart beats fast Colors and promises How to be brave? How can I love when I’m afraid to fall But watching you stand alone? All of my doubt suddenly goes away somehow One step closer

I have died everyday waiting for you Darling don’t be afraid I have loved you For a thousand years I’ll love you for a thousand more

please reissue those bonds! for a thousand more

[ohai]

Pretty ambitious for a pastry company!

[Destroyer_of_Worlds]

Since there’s no principal repayment and the bond has an embedded equity component, the vast majority of the present value is contained within the first 20 years along with the value of the optionality. Maturity date is irrelevant.

[S2000magician]

It’s a perpetuity, in essence.

[GorillaNerd]

lol im pretty sure the maturity date is pretty important, see what happens between the 20 year and the 1000 year bond when rates rise.

[hpracing007]

It’s like preferred stock, with better seniority that they can get tax saving on the interest.

[S2000magician]

@Nerdyblop

lol im pretty sure the maturity date is pretty important, see what happens between the 20 year and the 1000 year bond when rates rise.

The modified duration on a 6%, 20-year, semiannual pay bond with a 6% YTM is 11.55 years.

The modified duration on a 6%, 30-year, semiannual pay bond with a 6% YTM is 13.84 years.

The modified duration on a 6%, 1,000-year, semiannual pay bond with a 6% YTM is 16.67 years.

There’s a difference, to be sure, but it’s smaller than you might have imagined.

[Destroyer_of_Worlds]

@S2000magician

@Nerdyblop

lol im pretty sure the maturity date is pretty important, see what happens between the 20 year and the 1000 year bond when rates rise.

The modified duration on a 6%, 20-year, semiannual pay bond with a 6% YTM is 11.55 years.

The modified duration on a 6%, 30-year, semiannual pay bond with a 6% YTM is 13.84 years.

The modified duration on a 6%, 1,000-year, semiannual pay bond with a 6% YTM is 16.67 years.

There’s a difference, to be sure, but it’s smaller than you might have imagined.

What he said.

[hpracing007]

@S2000magician

@Nerdyblop

lol im pretty sure the maturity date is pretty important, see what happens between the 20 year and the 1000 year bond when rates rise.

The modified duration on a 6%, 20-year, semiannual pay bond with a 6% YTM is 11.55 years.

The modified duration on a 6%, 30-year, semiannual pay bond with a 6% YTM is 13.84 years.

The modified duration on a 6%, 1,000-year, semiannual pay bond with a 6% YTM is 16.67 years.

There’s a difference, to be sure, but it’s smaller than you might have imagined.

If only there was a program or certification that taught people how to calculate stuff like that. We’ll just have to depend on S2000 and his dark magic until then.

[GorillaNerd]

yea, when i was taking a shit, i actually thought about what dow said. and i was like damn, i think he might be right, but then i started thinking about the maturity, 500m 20 years vs 500m 1000 years and in my head, i was thinking im def right.

for your example, thats the case when ytm is friggin 6%, which is def not the case as rates are low. if bonds sell at par, coupon rate is ~2%. whats the duration on that. is it much higher or is the difference muted?

[Destroyer_of_Worlds]

@Nerdyblop

yea, when i was taking a shit, i actually thought about what dow said. and i was like damn, i think he might be right, but then i started thinking about the maturity, 500m 20 years vs 500m 1000 years and in my head, i was thinking im def right.

for your example, thats the case when ytm is friggin 6%, which is def not the case as rates are low. if bonds sell at par, coupon rate is ~2%. whats the duration on that. is it much higher or is the difference muted?

As you were taking a shit, did the stench remind you of your writing style?

[GorillaNerd]

smells like roses

[rawraw]

@Destroyer_of_Worlds

@Nerdyblop

yea, when i was taking a shit, i actually thought about what dow said. and i was like damn, i think he might be right, but then i started thinking about the maturity, 500m 20 years vs 500m 1000 years and in my head, i was thinking im def right.

for your example, thats the case when ytm is friggin 6%, which is def not the case as rates are low. if bonds sell at par, coupon rate is ~2%. whats the duration on that. is it much higher or is the difference muted?

As you were taking a shit, did the stench remind you of your writing style?

I loled