Apple recently issued a zero coupon bond. The zero coupon bond has a face value of $1 billion and matures in six years. Assume that when the bonds were sold to the public, the annual market rate of interest was 3 percent. Required: 2. How much did Apple receive when it issued the bonds with a face value of $1 Billion? 3. How much would Apple have received if the annual market rate of interest remained at 3 percent, and the bonds matured in 10 years? Complete this question by entering your answers in the tabs below. Required 2 Required 3 How much did Apple receive when it issued the bonds with a face value of $1 Billion? Note: Round your PV Factors to 5 decimal places. Enter your answer as a whole dollars rounded to nearest whole number. Present value $ 837,520,938 ×
Apple recently issued a zero coupon bond. The zero coupon bond has a face value of $1 billion and matures in six years. Assume that when the bonds were sold to the public, the annual market rate of interest was 3 percent. Required: 2. How much did Apple receive when it issued the bonds with a face value of $1 Billion? 3. How much would Apple have received if the annual market rate of interest remained at 3 percent, and the bonds matured in 10 years? Complete this question by entering your answers in the tabs below. Required 2 Required 3 How much did Apple receive when it issued the bonds with a face value of $1 Billion? Note: Round your PV Factors to 5 decimal places. Enter your answer as a whole dollars rounded to nearest whole number. Present value $ 837,520,938 ×
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Apple recently issued a zero coupon bond. The zero coupon bond has a face value of $1 billion and matures in six years. Assume that
when the bonds were sold to the public, the annual market rate of interest was 3 percent.
Required:
2. How much did Apple receive when it issued the bonds with a face value of $1 Billion?
3. How much would Apple have received if the annual market rate of interest remained at 3 percent, and the bonds matured in 10
years?
Complete this question by entering your answers in the tabs below.
Required 2
Required 3
How much did Apple receive when it issued the bonds with a face value of $1 Billion?
Note: Round your PV Factors to 5 decimal places. Enter your answer as a whole dollars rounded to nearest whole number.
Present value
$
837,520,938 ×
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