Comment on Alphabet selling very rare 100-year bonds to help fund AI investment

• ebolapie@lemmy.world ⁨17⁩ ⁨hours⁩ ago

  They’re actually around 80 bucks, versus an initial value of a cool hundo. But they also pay out like a 5% coupon rate annually, so if you had bought them in '97 you’d be slightly beating inflation.

  source

  • wewbull@feddit.uk ⁨16⁩ ⁨hours⁩ ago

    So those are associated with Motorola Solutions now, or did the debt move to Lenovo?

    source

    • ebolapie@lemmy.world ⁨16⁩ ⁨hours⁩ ago

      Yeah, the debt belongs to Motorola Solutions now. Although it would have been very funny if they somehow stuck Lenovo with it.

      source
  • Valmond@lemmy.dbzer0.com ⁨11⁩ ⁨hours⁩ ago

    Does that mean 5% of 80 cents or 80 bucks?

    source

    • BeardedGingerWonder@feddit.uk ⁨5⁩ ⁨hours⁩ ago

      Coupon rate is paid on the principal - assuming the hundo is accurate then it’s 5%/yr. If you think Motorola will be around in 14 years then you’d have your investment back. If you think they’ll be around in another 70 years you get $350 + $100 because when it matures they need to repay the bond.

      source