100-Year Bonds Take A Hit

Since 1993, 65 100-year bond issues have occurred in the U.S, with a face value of $16.29 billion. Of course, since long-term bonds have more interest rate risk than short-term bonds, you would expect these bonds to have lost significant value in recent months, and you would be correct. For example, IBM's 100-year bonds have dropped 18 percent since May and MIT's 100-year bonds have dropped 19.3 percent with only a one percent increase in YTM.