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Apple issued a EUR 5 billion Eurobond in 2015. The issuance price was EUR 1.01215 per Euro, and Apple paid a 0.1257% fee to its
Apple issued a EUR 5 billion Eurobond in 2015. The issuance price was EUR 1.01215 per Euro, and Apple paid a 0.1257% fee to its investment banks underwriting the debt issue. The Eurobond pays a yearly 3% coupon and has a maturity of 10 years.
Using excel, compute the All-In-Cost rate for this debt issue.
Assuming that the interest rate is 2.5%, what is the credit spread paid by apple on this issue?
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