Bond B 1. Which one of these two bu 2. Why do you think so? Answer maturity? Answer A B Please use the following information to answer the quest Apple INC has issued a 10-year bond on 3 May 2013. The coupon rate is 2.4%, the coupon is paid semi- annually. The issue size was 5.5 billion dollars. The investor added 500,000 worth of the above Apple INC's bonds to his portfolio. Calculate the amount of the coupon payment on his bond holding, that the investor receives each coupon date. 3. Suppose you have spare 50,000 US dollars and you decide to purchase the bonds today. The current yield to maturity is 2.75%, will you buy the bond at premium or at discount? Answer 4. 5. Draw a timeline of the remaining bond cash flows. Clearly label them: put the dates and amounts 6. Calculate the current market price of the bond today (using current yield to maturity). 7. Bonus 2 porints: Calculate the dirty price - the amount you will haveto pay if you want to buy the with the 50,000 par value TODAY. Bond B 1. Which one of these two bu 2. Why do you think so? Answer maturity? Answer A B Please use the following information to answer the quest Apple INC has issued a 10-year bond on 3 May 2013. The coupon rate is 2.4%, the coupon is paid semi- annually. The issue size was 5.5 billion dollars. The investor added 500,000 worth of the above Apple INC's bonds to his portfolio. Calculate the amount of the coupon payment on his bond holding, that the investor receives each coupon date. 3. Suppose you have spare 50,000 US dollars and you decide to purchase the bonds today. The current yield to maturity is 2.75%, will you buy the bond at premium or at discount? Answer 4. 5. Draw a timeline of the remaining bond cash flows. Clearly label them: put the dates and amounts 6. Calculate the current market price of the bond today (using current yield to maturity). 7. Bonus 2 porints: Calculate the dirty price - the amount you will haveto pay if you want to buy the with the 50,000 par value TODAY