Attached is a Prospectus issued by Apple to facilitate a series of bonds in late 2019. Your responsibilities are to review the Prospectus and answer the following questions.

1.What is the total face value of the debt?

2.What are the total proceeds to Apple?

3.Explain the difference.

4.Focus on the $2 Billion 2.050% Notes due in 2026

What are the semi-annual payments that would be received by a bond holder?

As the investor, are you guaranteed you will receive these semi-annal payment until the bond expires in September 2026?

Assume a comparable U.S. Government bond has an interest rate of 1.75%. What does that tell you about the relative risk of the Apple Bond?

5.Now focus on the 2029 Apple Note. What is its interest rate? Why is the 2029 interest rate different from the 2026 interest rate?