Markets in Everything: Chocolate Bonds
CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Sunday, May 30, 2010
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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4 Comments:
This will never work. People consistently underestimate their future demand for chocolate.
"People consistently underestimate their future demand for chocolate"...
Good point!
Consider the following though and the idea of chocolate bonds might take on an added urgency with the baby boomers...
From Science Daily: Chocolate Might Reduce Blood Pressure and Risk of Heart Disease, Research Suggests
this is actually a very clever ploy on the part of the company.
consider:
paying a lender $100 in chocolate is far better for the company than paying $100 in cash. they are giving the lender $100 worth of product that costs less than $100 to make. if they have a 30% gross margin on chocolate, then the real interest rate paid by the company is negative and they are getting paid to borrow money.
very clever.
I agree very clever. Regardless of what the actual interest rate is for the company (based on cost to produce product) - this is a great marking. Cool way to get their brand out there. And it's gotten them a mention in the NY Times.
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